The GOP pledge -- does it add up

The attack from the news media on teh GOP's Pledge to America is moving forward with the expected force. I have now seen four articles that purportto analyze the components of the Pledge. Not surprisingly, I have yet to see any analysis in the media as to whether or not the current Democratic course works in the same way.

One article puts it this way

"The GOP promised to "advance policies that promote greater liberty, wider opportunity, a robust defense, and national economic prosperity," including (but not limited to):

-- Permanently Extending the Bush Tax Cuts - for all taxpayers.
-- Repealing Obama's Healthcare Law
-- Freezing Discretionary (i.e. non-defense related) Federal Spending
-- Ending the Government's Control of Fannie Mae and Freddie Mac
-- Canceling Unspent Stimulus Funds"

They then conclude that if the deficit is important, it makes no sense to extend the Bush tax cuts permanently.

This, of course, is using the favorite Obama tactic of creating a straw man to knock down. The issue is not the cost of extending the Bush tax cuts. Everyone, both Democrat and Republican, wants to extend most of those cuts permanently. This will cost clost to 2.5 trillion dollars over the next ten years. The dispute is only with regard to taxes for those with incomes over $250,000 per year, a group that includes about half of all small business income in the USA. The question to be answered is whether it makes sense to raise taxes substantially on small business when that segment is the one that creates most of the new jobs in the country. The cost of stopping this tax cut is estimated by the CBO at 700 billion dollars over ten years, but the CBO does not assume that the tax increase will slow economic development and job creation. If it does, then the additional tax could actually reduce government revenues. Republicans want to bring back jobs and are less worried about class warfare than the Democrats.

Every one of the other items listed will reduce spending. Freezing discretionery spending is meant to be at 2008 levels, not at current levels. The article did not make this clear. That freeze will cut over 100 billion dollars a year in spending alone. That is well over a trillion dollars in ten years. Obamacare is also now know to result in a major increase in government spending; the smoke and mirrors that the Democrats used to claim that it would be deficit neutral was long ago disproven. Even the CBO agrees. The repeal of Obamacare cuts probably close to half a trillion dollars from the deficit over the next decade.

The truth is that the way to end the deficit is to cut back spending where possible and get the economy to grow so that revenues increase. Unleashing the vigor of the economy from the shackles that Obama has put on it is a great way to get that extra revenue and to return prosperity to the US at the same time. This is what the GOP plan is all about. Unfortunately, most liberals do not even understand this concept.