Holtz-Eakin Honesty

Congress likes to claim that the series of huge tax cuts, coming at a time of increased military spending to wage war and then fund occupation and reconstruction in Afghanistan and Iraq, deserve the credit for what is described as a booming economy.  The raw facts, however, are more sobering.  While productivity has increased, ordinary Americans have not received much benefit.  Inequality is growing, "Food Banks [are] Leaner  As More In U.S. Are Hungry" and big CEOs are being paid huge multimillion dollar pacakages while their workforces are being outsourced.  Trade imbalances and huge budget deficits will not just fade away or be outgrown because of more tax revenues in a lower taxed economy.  And those deficits will have a long-term impact, especialy if for any reason foreign investors decide to withdraw their funds from the U.S. and invest in other places.  As the Times pointed out today, Congress top economist has been no shrinking violet in trying to help Congress understand the impact of unending deficits.  Holtz-Eakin has in fact opposed tax cuts accompanied by increased spending and provided a clear report of the tax cuts' tilt towards the superrich.  Read the editorial, here.