Temporarily Reducing The Deficit Hasn’t Solved The Problem

Paul Krugman should not be stressing the temporary reduction in the federal deficit. After all, the deficit went up when the federal government extended the Bush tax cuts and reduced withholding taxes during the two years prior to the election. Now that a portion of the Bush tax cuts have been taken away, and withholding taxes have returned to prior rates, the immediate effect is to reduce the deficit.

We need to create a signifcant number of federal income tax paying jobs and bring entitlement costs under control in order to reduce the deficit over the long run.


Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.