Surprise! According to Rick Perry, now is the time for drastic tax cuts. Although the governor's postcard tax plan means trillions in lost revenue, Perry is still convinced he can balance the federal budget within seven years of becoming president.
On Fox News Sunday this morning, host Chris Wallace asked the governor to explain his math. Perry turned to the tired Republican myth
-- that tax cuts actually increase revenue. According to Perry, when you allow job creators to keep more of their earnings, they invest back into the economy (presumably the U.S.'s economy), which creates jobs, spurring growth and leading to more revenue.
It's the same voodoo economics we've heard for decades, but which has been disproven over and over again. We came closest to an actual balanced budget at the end of the Clinton years, which began with a series of tax increases, meant to reign in our out of control deficits.
By some measures, the U.S. economy did ok during the George W. era, but the country bled jobs, especially manufacturing jobs, despite two of the biggest tax cuts in history in 2001 and 2003. The main legacy of those two cuts have been the astronomical amounts of debt they've left us with. The CBO recently estimated that the Bush tax cuts have left us with an additional $2.8 trillion in debt
If the Bush cuts are left in place, they'll continue to lead to out of control deficits. Imagine what happens if Perry's allowed to cut taxes even further.