It looks like Montana’s sole Representative in the U.S. Congress, Dennis Rehberg’s proposals to reduce the deficit by permanently cutting taxes for all income, regardless of whether the person is a billionaire or makes $35,000 a year, will actually increase the national deficit by an additional $700 billion through the year 2020, according to fiscal analysts.
In an extensive story in this Sunday’s September 19, 2010 Great Falls Tribune, entitled “Roots of U.S. debt run deep and parties are miles apart on what should be done,” mysteriously not available online, reporters Maureen Groppe and Ledyard King of the Tribune Washington Bureau report that Rehberg claims that:
[I]t’s dishonest to say that cutting taxes has the same impact on the debt as increasing spending.
But according to a study by the non-partisan Congressional Budget Office, Rehberg is wrong.
Looking at just the effects of extending the 2001 and 2003 tax cuts, the CBO at the time concluded that they would initially help the economy but would have a negative effect in the long term because of the impact on the deficit.
It gets worse. The article goes on to explain that the largest 10-year increase in the deficit came from tax cuts passed under Rehberg’s watch,
…which added about $1.7 trillion to the deficit, according to the Congressional Research Service. Legislation passed in fiscal year 2009, including the financial bailout passed in late 2008 and the stimulus package passed in 2009 increased the deficit by$509 billion compared with a $903 billion increase caused by tax cuts and spending programs enacted from 2001-2008.
Also under Rehberg’s tenure.