The Republican Proposal

The President stated in his press conference Tuesday night that Republicans have failed to propose their own budget. I knew it, everyone else listening knew it, and I am sure Obama knew it was coming as well; the Republicans unleashed their own budget today.

While very short on details, the differences between the two plans are startling. Obama's plan places a key emphasis on government spending to get the economy rolling again ($3.6 trillion in proposed spending with a conservatively estimated $1.2 trillion deficit, compared with Bush's final budget proposal of $3.0 trillion with a $400 billion deficit), while the Republican plan calls for massive tax cuts across the board.

How massive? Under the Republican plan, the tax rate would drop to 10% for people making $100,000 or less (I assume that means household income). Republicans also promise to lower capital gains taxes and give a 20% tax break to companies employing less than 500 people. The plan also promises to cut government spending below current levels, but does not give specifics as to which programs could be cut (I assume there will have to be some cuts).

Although I am not familiar with the details (and apparently either are the Republicans), I think it is a better long term strategy to cut taxes and government spending. Doing so will promote business growth here in the United States (companies will have more money to employee people and spend on research and development), and people will have more money at their disposal, allowing the free-market economy to work its magic. Less money going to the government will mean a better chance at increasing wealth in the country, and will help pay down the national debt and raise the value of our currency.

I do hope the Republican plan does not cut energy and education. In fact, I still maintain the position that I would be OK with increases in spending in these two areas (as I view them as essential to a strong economy).

Here are some pretty cool sites I stumbled upon:

1) United States total debt (updated daily): http://www.treasurydirect.gov/NP/BPDLogin?application=np
2) History of United States budgets: http://www.gpoaccess.gov/usbudget/
3) Where the money went in fiscal year 2008: http://www.federalbudget.com/

Until we meet again, goodbye!