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GOP Argues Tax Cuts Increase Government Revenue
Posted by Brian Montopoli


Republican Senate Minority Whip John Kyl was hammered by Democrats earlier this week for backing extending the Bush tax cuts for the wealthy - and insisting they need not be paid for.

Now Senate Republican Leader Mitch McConnell is backing up Kyl's position.

"That's been the majority Republican view for some time," McConnell told TPMDC. "That there's no evidence whatsoever that the Bush tax cuts actually diminished revenue. They increased revenue, because of the vibrancy of these tax cuts in the economy. So I think what Senator Kyl was expressing was the view of virtually every Republican on that subject."

McConnell's argument is that even though the government would be forgoing hundreds of billions of dollars in revenue by extending the tax cuts on relatively wealthy Americans, that loss will be more than offset by the growth spurred by keeping the money in taxpayers' pockets. (The Obama administration wants to extend the cuts for Americans making less than $200,000 or $250,000 but let them lapse for those making more than that.)

Yet as the Washington Post's Ezra Klein and others are pointing out, McConnell's position is largely not supported by budget experts, including President Bush's own Congressional Budget Office. (Here are a number of other experts offering a similar perspective.) ...........(more)

The complete piece is at: http://www.cbsnews.com/8301-503544_162-20010568-503544.html