Interesting. Republicans said the same thing during the fallout from Reagan/Bush deficit spending in the early 1990s when Clinton had to stimulate our way out of it through temporary big deficit spending. By 2000 the debt to GDP ratio had decline dramatically, far more than during any modern day Republican, and we were running surpluses. President Bill Clinton brought our fiscal house in order, and created over 20 million American jobs.
How did we get here during the last 10 years?
Easy. The Bush Republicans implemented a big stimulus tax cut to get us out of a recession in the early 2000s, and then continued the stimulus tax cut that we could no longer afford during a period of economic prosperity when we did not need it any longer, and during not one but two wars. No other US government ever cut taxes during a war. We can see why now.
Most Bush Republicans/Tea Partiers claim that continuing the Bush tax cuts that caused this problem will fix this problem. The logic is not there. Greenspan, Stockman and other prominent Republicans have stood up in response against their party and said we have to start paying for our government again like we do under Democratic Presidents (even President Carter lowered our debt to GDP ratio - something no Republican President has done in a long time).
The Clinton tax model not only balanced the budget, but also created over 20 million jobs during the 1990s. This is why Greenspan called Clinton the best Republican President we've had in a while. After spending our way out of a recession Clinton did the responsible thing and brought taxes back in line with government spending. In comparison, the Bush Republican deficit spending tax cuts created only 4 million jobs during the last decade and left our fiscal house weakened.
The Republicans' track record is that while they cut taxes, they are unable to control government spending any better than Democrats. This is why Republican tax cuts lead to deficits that weaken our economy in the long run. I hope Independents take note of these facts this fall.
"Republicans said the same thing "
You're saying the CBO and IMF are republican groups?
Good point. Kolikoff, the fair tax guy who wrote the article on the CBO and IMF reports, not the CBO and IMF themselves, said we are effectively bankrupt. And of course America is not bankrupt until our government legally admits it or our creditors force us into bankruptcy.
Nor is our fiscal situation that much worse than when Republicans said the same thing in the early 1990s after 12 years of Republican taxation policy.
Kolikoff himself has said the same thing for a long time, including in the early 1990s before President Clinton proved him wrong. Kolikoff was wrong then and he is wrong now. Republican unpaid-for taxation strategy, not our current fiscal state, is our biggest fiscal threat.
As a central part of their platform, these same Bush Republicans and the Tea Partiers are calling for a continuation of the fiscally destructive tax cuts on borrowed money. I hope Americans think twice before voting for the Bush/Tea Party Republicans as long as that is their policy prescription.
"would require raising revenues as a percentage of GDP significantly above past levels, "
I had read the comments about doubling taxes in order to balance the books as projected by the CBO. But then again
"Nor is our fiscal situation that much worse than when Republicans said the same thing in the early 1990s after 12 years of Republican taxation policy. "
As the CBO report mentions, the earlier something is done the better. Corrective action could've been taken in the 90's and it would've been almost painless. We should've listened to those people.
So we are actually
"Corrective action could've been taken in the 90's and it would've been almost painless."
The Clinton tax rates were a balanced solution that dramatically lowered the size of our debt relative to the economy and ended the decade in a surplus. In other words, we took corrective action in the Clinton tax increase, which was not double the Bush rates and in fact was lower as a percentage of GDP than Reagan's tax increases.
Then the Bush Republicans made poor tax policy decisions over the past decade while launching us into a costly unnecessary war. Yes the Bush tax cuts were a fine temporary stimulative response during the next cyclical depression that followed during the early 2000s. Extending the Bush tax cuts was a big mistake. It weakened us fiscally.