The GOP finally released their full alternative budget proposal yesterday.
If you want to download the entire thing, click here.
I'll admit, some of the budget points make some sense. They talk about ending the bailouts. I can live with that.
They shows graphs showing that both their budget deficits and the national public debt would go way down with this budget as compared to Obama's. But how?????
By freezing all government spending. (except for defense spending, this they would increase by $50 billion).
Repealing all stimulus bills.
They then give all these impressive figures about how the deficit spending is $100 billion less than Obama's, and how the Public Debt will be less in 10 years with their budget than with Obama's. How will this be done?
By going into they go into Fantasy Land.
They want to make Bush's tax cuts on those that make over $150,000 a year permanent. A cut from 39% to 35%.
They would add to the Bush tax cuts.
The wealthy (those that make over $150,000 a year) would get an additional 10% off, to 25%.
Corporation's tax rates would go down to 25% instead of 35% (current) and 39% (Obama's).
Suspends capital gains taxes.
The middle classes taxes? Stays the same.
But how does this bring down the deficit spending and public debt????
Oh wait, I forgot a crucial part of their budget.
The tax cuts down to 25% are optional. Yes. They assume that the wealthy and corporations won't take them up on the 10% decrease in the taxes, that they'll voluntarily pay taxes at 35%. All of their figures assume the 35% rate. If they gave those tax cuts to those that carry the tax burden, their deficit spending should SKYROCKET, followed closely by a skyrocketting public debt, much higher than Obama's.
Looks like the Republicans fail again.
This budget was so ridiculous that, although no house republican voted for the Dems' budget, the Repubs lost this battle in the house 293-137, with 38 of their own voting against it.