“Starve the Beast” enables the Bankrupt-in-Chief

Source: Niskanen Center
by Will Wilkinson

“Other than containing less detail, Donald Trump’s notes toward a sketch of a ‘tax plan’ is similar to his campaign tax proposal, which analysts estimated would add $3-5 trillion to the budget deficit. That is to say, Trump does not have a corresponding plan to reduce spending. Republicans often rail against deficits, but when the rubber hits the road, they reliably increase deficit spending by cutting taxes. This has often been rationalized by the idea that reducing revenue and driving up deficits creates pressure to ‘Starve the Beast’ and reduce spending. But big tax cuts create no pressure at all to balance the books. On the contrary, they ease the main pressure that keeps spending and the size of government in check. In the hands of a big-spending, serial bankrupt like Donald Trump, Republican supply-side fiscal policy dogma, of which Starve the Beast is a central element, poses a serious threat to the growth and stability of the American economy.” (05/10/17)