In other words, it’s not a revenue (read: tax increase) problem. It’s a spending problem.
As we first pointed out in April:
2007 Federal Budget: $2.73 trillion.
Note: This was the last all Republican budget – the House, Senate and White House were at the time all run by the Rs.
2011 Federal Budget: $3.82 trillion.
Note: 2011 is an estimated total. Because the Democrats that were at the time running the House, Senate and White House didn’t write a budget – because they were afraid to go on the record with how much they actually wanted to spend in advance of the 2010 election.
Meaning – it could have been WORSE.
That is a $1.09 TRILLION increase – in just the last four years. A 29% increase – in just the last four years.
So when the Democrat members of the Super Committee propose $1.3 trillion in new taxes - they are woefully missing the point, and the true solution.
And that solution is: Stop Spending. In fact, dramatic cuts are in order.
Stop looking for/counting on new sources of government money – especially silly when they are one-time-only in nature (like, say, spectrum auctions. Which are a great idea spectrum-wise – but are a terrible idea deficit/debt-wise).
It is not a lack of government money problem.
The federal deficit this year was/is $1.5 trillion – which means the government collected $2.3 trillion. That is plenty. More than too much, actually.
So to the Super Committee – and everyone else in Washington:
Stop looking for more coin. And just cut spending now.