It’s not clear why Washington elites want to cut the deficit. Anything that cuts the deficit, be it spending cuts or increased taxes, reduces jobs by taking money out of the economy and out of circulation. But if we must have deficit cuts, I hope politicians will do this in a way that protects jobs as much as possible.
Last October, Rep. Cathy McMorris Rodgers assured us that she was opposed to “job-killing tax hikes.” Let’s hope that she is even more opposed to job-killing spending cuts. Dollar for dollar, the proposed spending cuts would kill five to 10 times as many jobs as the same amount of money collected through tax increases.
Finally, it is surprising that tax cuts are being talked about in the same breath as deficit cuts. Cutting taxes to reduce the deficit is like going to Yellowstone Park to get away from people.