NCPA - National Center for Policy Analysis

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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