This is a better plan then the House Republican budget plan. Because it moves us past the George W. Bush borrow and spend policies where you can cut taxes indefinitely and increase defense spending indefinitely without paying for any of it. What House Democrats are trying to do led by Chris Van Hollen Ranking Member of the Budget Committee. Is say we have both a revenue and a spending problem, we are spending too much money in some areas. We aren’t collecting enough money to pay for the things that the Federal Government needs to do and we need to invest more in areas that we should be spending on. That leads to better economic and job growth, like in infrastructure, science and other research. So the goals are clear and very laid out and if Representative Paul Ryan wasn’t Chairman of the Budget Committee and Representative Van Hollen was. This plan would probably pass in the House.
The problem with the plan is as it relates to taxes and closing tax expenditures because it closes those loopholes and raises taxes at the same time. Meaning there’s a net tax increase when American business’s are already worried about investing in America because they believe they can get better deals in other countries and perhaps even have a better trained workforce. Which is a long-term economic problem that America is going to have to deal with. You want to close wasteful tax expenditures great but while we are doing that lets incentivize business’s domestic as well as foreign, as well as individuals to spend and invest money in America. Which leads to more jobs because we would see more business’s expanding and more people spending money.
Whatever final deficit reduction plan that’s passed out of Congress. Is going to have to have three things. Cuts in areas where we are spending too much money, as well as eliminating programs we don’t need. Reforming programs that we do need to make them work better and make them more cost-effective. And investing in things that lead to solid economic and job growth. Which is infrastructure and pro growth tax reform and the Van Hollen budget accomplishes about one of those things.