Lawrence Kudlow Proposes (Modest) Spending Cuts
I’ve decided to say something nice about Larry – he’s actually has a proposal to cut $150 billion per year in Federal spending. I know – this is still far short of reigning in that massive General Fund deficit, but someone has to offer up something. Larry’s list is short and to the point. Cut $20 billion in farm subsidies and cut $15 billion in special interest pork. I’m with you so far Larry!
But the rest is a shift in spending responsibilities to the states and cutting $40 billion out of entitlements. Even if we accepted his increase in net taxes on the poor idea (less entitlements), half of his proposed “cuts” are not cuts in government spending but simply backdoor state tax increases. Is this the best the no-tax-increase crowd can offer? Of course, the Republican leadership will likely adopt none of Larry’s proposed reductions in farm subsidies and pork.