The Return of the Free Lunch Party

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As Ronald Reagan's budget chief almost thirty years ago, a frustrated David Stockman famously lamented that when it comes to spending discipline, "there are no real conservatives in Congress." Now, three decades after he concluded "the supply-siders have gone too far," Stockman called the Republican demand for another $700 billion tax cut windfall for the wealthy, "unconscionable." As well he should. With the new GOP majority's financial toxic brew of gargantuan tax giveaways and still unnamed spending cuts, the Free Lunch Party has returned.

In truth, it never really left. As Stockman experienced first-hand, the national debt tripled under Ronald Reagan. The Gipper's M.C. Escher-like pledge to slash taxes, raise defense spending and balance the budget produced a torrent of red in that exceeded that of the previous 200 plus years of American history combined.

But conservative propagandists soon forgot Stockman's "magic asterisk" and Reagan's subsequent tax increases, neither of which could stop the record budget deficits he produced. After the Clinton balanced budget hiatus in the 1990's, George W. Bush doubled the national debt yet again. As explained in "The Bush Tax Cuts in Pictures," President Bush's Free Lunch dream predictably turned into a budgetary nightmare:

The Center on Budget and Policy Priorities demolished the mythology promoted by President Bush ("You cut taxes and the tax revenues increase") and the usual suspects on the right. CBPP found that Bush tax cuts accounted for almost half of the mushrooming deficits during his tenure.

And as another recent CBPP analysis revealed, over the next 10 years, the Bush tax cuts if made permanent will contribute more to the U.S. budget deficit than the Obama stimulus, the TARP program, the wars in Afghanistan and Iraq, and revenue lost to the recession

put together.

(Worse still, the Bush tax cuts also coincided with an increase in poverty and a decline in Americans' average household income.)

And now, at a time of record budget deficits and record income inequality, Speaker Boehner and Minority Leader McConnell want to make the expiring Bush tax cuts permanent. The leading lights of the GOP still insist that draining $4 trillion from the U.S. Treasury over the next 10 years (including that $700 billion payday for the richest 2%) doesn't cost a cent.

For his part, this summer John Boehner wrongly claimed, "It's not the marginal tax rates ... that's not what led to the budget deficit." In July, Jon Kyl (R-AZ) the second ranking Senate Republican made the same point another way, telling Chris Wallace of Fox News, "You should never have to offset cost of a deliberate decision to reduce tax rates on Americans." Aborted Obama Commerce nominee Judd Gregg (R-NH) soon chimed in, declaring "I tend to think that tax cuts should not have to be offset." For his part, Oklahoma's Tom Coburn argued his math will work in the future if you ignore the past, "Continuing the [bush] tax cuts isn't a cost, if you added new taxes, new tax cuts, I would agree that's a cost." Senate Minority Leader Mitch McConnell explained how tax cuts magically turn red ink black:

"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."

Which is sadly right. The supply-side snake oil has been Republican orthodoxy ever since Jude Wanniski first sketched Arthur's Laffer's curve on a cocktail napkin.

In February 2009, Texas Senator Kay Bailey Hutchison offered the purest expression of the tried and untrue Republican gambit:

"I think we get revenue the way we've done it in the past that has been so successful in the past and that is tax cuts...Every major tax cut we've had in history has created more revenue."

In October, now Senator-elect from Kentucky Rand Paul summed up the new fuzzy math of the Free Lunch Party. Regarding that $4 trillion price tag, Paul declared, "I'm not seeing it as a cost to government." Then again, Rand Paul isn't talking about any ways to cut federal spending, either. And he has plenty of company among the ranks of the Free Lunch Republicans.

Republicans swept to power by promising to cut, in the words of Indiana's Mike Pence, "runaway federal spending." But when it comes to putting taxpayers' money where their mouths are, Pence, incoming Speaker John Boehner, future Majority Leader Eric Cantor, Michele Bachmann and much of the cowardly GOP's top-brass refuse to say what budget cuts they will actually make.

For months, Republicans have refused to "man up" to the draconian budget cuts their tough-talking campaign pledges would necessarily require. Pressed by NBC's David Gregory last month, Mike Pence could not "name the painful choice on a program that you're going to cut." Asked seven times by Chris Wallace of Fox News, failed GOP California Senate hopeful Carly Fiorina responded only, "you're asking a typical political question." Even as he touted the "GOP Pledge to America," Speaker-to-Be Boehner dodged Wallace as well:

"Let's not get to the potential solutions. Let's make sure Americans understand how big the problem is. Then we can talk about possible solutions and then work ourselves into those solutions that are doable."

http://www.dailykos....11/17/231215/92