Friday, November 5, 2010

Republicans List Big Goals on Budget and Economy - NYTimes.com

Republicans List Big Goals on Budget and Economy - NYTimes.com

Republicans are standing by their campaign vows to slash spending for domestic programs immediately by at least one-fifth — $100 billion in a single year — even as many mainstream economists say such deep cuts could further strain the economy and should await its full recovery. Republicans also say they will try to deny money to put Mr. Obama’s new health care law into effect, though they have not made clear what they would do to make up the cost savings that would be lost if they succeeded in repealing the law.

In policy documents, including a blueprint this week from Representative Eric Cantor, the likely Republican majority leader in the new Congress, the party has made clear that its main proposals for creating jobs are to cut regulations and taxes — in particular to make the Bush-era tax cuts permanent for all incomes. Extending the tax cuts, however, would add nearly $4 trillion to the debt by 2020, and hundreds of billions more in interest owed for the additional government borrowing, greatly complicating another Republican goal: balancing the budget.

Republicans say they will insist that, whatever the duration, all rates must be extended in tandem — the easier to extend them together again in the future. Both sides recognize that, politically, Republicans would have a harder time in the future trying to extend only the rates that benefited the richest Americans, about 2 percent of taxpayers.

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