The IUSB Vision Weblog

The way to crush the middle class is to grind them between the millstones of taxation and inflation. – Vladimir Lenin

CBO: Obama’s Deficit Reduction Plan Unlikely to Work and…..

Posted by iusbvision on February 26, 2009

…The latest CBO deficit estimates do not include the costly policy initiatives in health care, energy and education that the president mentioned in his Tuesday speech before a joint session of Congress.
 

Smart people know that the CBO uses static models so their predictions on revenue are often off because they do not account for how changes in policy affect peoples behavior. For Example: when the capital gains tax was lowered CBO predicted that the revenue from the tax would fall when in fact it went up.

Here is the rub, Democrats use these kind of numbers and even though they rarely pan out, they continue to believe in them, so this means that they are doing this in spite of numbers they trust telling them it is not going to happen (see Quinn’s Law #5).

Washington Times:

A new report reveals how difficult it will be for President Obama to increase spending on health care, energy and education while cutting the deficit in half.

Based on budget scenarios outlined by House Speaker Nancy Pelosi, California Democrat, federal budget deficits will average $870 billion for the next 10 years, according to a new analysis by the nonpartisan Congressional Budget Office (CBO).

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