The Republicans announced their alternate budget (for real, this time!) late last week. Here’s a snapshot of their great ideas:
House Republicans yesterday unveiled a more complete proposal that would cut taxes for businesses and the wealthy, freeze most government spending for five years, halt spending approved in the economic stimulus package and slash federal health programs for the poor and elderly.
And you wonder why we’re in this mess? In a timeframe when demand is dropping for all kinds of goods and services, slashing business taxes and taxes for the wealthy, while reducing support for those who already lack access to basic goods, is a recipe for even further declines. Those who already have money beyond the basic services will only save any incremental income to conserve resources, while those who are marginal would otherwise spend incremental income on basic necessities, thus stimulating demand. A scenario of falling demand requires the opposite approach, to support those most at risk financially while requiring those who have more to contribute a larger share.
Seriously, this plan sounds like robbing the poor to pay the rich. A swell plan.