April 21, 2011
Would You Accept Clinton Tax Rates If Combined With Gingrich Spending Levels?
The media were enthralled by former Federal Reserve chairman Alan Greenspan's suggestion on Sunday's Meet the Press that we should immediately end the Bush tax cuts and raise the marginal brackets to what they were in Clinton's last year in office.Before conservatives summarily cast this aside, maybe it should be considered with one caveat: we also go back to former House Speaker Newt Gingrich's spending levels in 1999.Consider the numbers before thinking me crazy.Gingrich's last budget before he resigned as Speaker had total unified expenditures -- meaning including Social Security and Medicare -- of $1.7 trillion. Adjusted for inflation, that would be $2.3 trillion today. As the Office of Management and Budget is estimating tax receipts of $2.5 trillion this fiscal year, we would produce a $200 billion surplus.Imagine the economic benefits as the dollar exploded in value along with treasury prices bringing long-term interests rates down, while pushing oil and commodity prices...(Read Full Article)