GOP Budget Goals Relatively Modest
November 20, 1995
The Republican road map for balancing the federal budget in seven years is far from the radical plan often described -- in fact, it is quite modest.
- By 2002, federal spending will be $267 billion higher than in 1996.
- Federal spending will represent 19 percent of the economy then, compared to 22 percent today.
- Revenues are scheduled to climb $449 billion over the seven years.
- In 2002, taxes will consume 19 percent of GDP -- as they do today.
- Planned increases in spending will be reduced by $432 billion during the first five years and $520 billion the last two years.
The federal government will still spend an incredible $12 trillion from now through 2002. One reason is that only about 50 of the 300 programs the Republicans wanted to eliminate actually got the ax.
As for tax cuts, the $245 billion slated for the seven years represents only 0.4 percent of the nation's total economic output.
The Republicans' seven-year plan is actually less bold than plans offered up by lawmakers and presidents in the past.
Source: John Merline, "How Radical is the GOP Budget?" Investor's Business Daily, November 20, 1995.
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