by James Ostrowski, Mises.org – 3/20/2001
President Bush has proposed a $1.6 trillion tax cut. I would like to suggest that the president modify his tax proposal. He should increase the size of his tax cut to $21 trillion.
Well, itâ€™s not really a $21 trillion tax cut. Itâ€™s a $2.1 trillion tax cut. I got the $21 trillion figure by projecting it for ten years, just as Bush does with his. I donâ€™t know why Washington projects these tax cuts for ten years, since federal budgets are only good for one year and can be changed any time thereafter.
But, you say, isnâ€™t $2.1 trillion the entire federal budget for one year? Right you are. Let me explain my proposal, using fourth-grade math. [Note: If the following figures are off by a couple billion bucks, blame the OMB press office for not returning my phone call.]
The feds are going to extort $2,084 billion from us this year. But they are only going to spend $1,868 billion. If we eliminate all overpayments, you have a $216 billion tax cut. Now, let me give you back $210 billion more, which is what we pay in interest to those who were silly enough to lend money to the government. This has a side benefit of discouraging anyone from lending to the government again, as well as encouraging sound fiscal policy in the future.
Total tax cut so farâ€”$426 billion.
Letâ€™s do some more easy tax cuts. Letâ€™s eliminate a bunch of departments we could do without. In the name of the Ninth and Tenth Amendments, I hereby abolish