Archive | February, 2011

Top Five Myths about Reducing Our $16 Trillion National Debt

Posted on 16 February 2011

  1. We Can Use Income Taxes Alone to Reduce the Debt
    No less an authority than Erskine Bowles, the co-chair of the President’s Fiscal Commission and chief of staff to former President Clinton, has admitted that the US cannot tax its way out of debt.
    [Prove it…]

  2. We Can Reduce the Debt Without Reforming Social Security and Medicare
    A CBO projection shows that the country is on a path where spending on entitlement programs, like Medicare and Social Security, could eventually consume every dollar of tax revenue that the US brings in. Plainly, a debt-reduction plan that ignores these two programs is no plan at all.
    [Prove it…]

  3. Repealing the Health Care Law Will Increase the National Debt
    The health care law will require over $2 trillion in new spending in its first full decade. The misleading claim that this new entitlement can reduce our national debt—and that repealing it will increase our debt—is supported only by budget gimmicks, unrealistic Medicare cuts, and hundreds of billions in new taxes and fees.
    [Prove it…]

  4. We Can Solve Our Debt Crisis By Making the Government More Efficient
    Reducing our national debt by making the federal government more efficient has a nice ring to it—deficit reduction without the painful sacrifice. In reality, these cuts do almost nothing to address what the CBO has identified as the three long-term drivers of our budget deficits: Social Security, Medicaid, and Medicare.
    [Prove it…]

  5. The US Can Afford Higher Interest Rates
    In February of 2010, Treasury Secretary Timothy Geithner confidently predicted that the US would “never” lose its perfect AAA credit rating. Yet that’s exactly what happened, when credit rating agency Standard & Poor’s downgraded our rating from AAA to AA+. The cost of the other agencies following suit—for our government, and for our individual pocketbooks—would be tremendous.
    [Prove it…]