
Federal Spending & The Budget | |
Plenty Of Room For Spending Cuts |
Critics say Bob Dole's tax cuts will reduce federal revenues and increase the federal deficit unless federal spending is cut. By some estimates, Dole's plan would reduce federal revenues by $550 billion over six years. Budget analysts find plenty of places for savings, without even touching entitlements and military spending:
Killing HUD and Education outright would save $185 billion more. These are certainly not the only areas ripe for reduction. We could save another $50 billion by bringing home and demobilizing just half of our 100,000 troops in Europe. Ending foreign aid would save $70 billion. In addition, we could:
These savings do not include interest savings from lower deficits, nor any increased revenue from the supply-side effect of cuts in marginal tax rates. Source: Dean Stansel (Cato Institute), "Can We Afford the Dole Tax-Cut Plan? Investor's Business Daily, August 9, 1996. |
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