At the Tea Party Express/CNN debate in Tampa, Florida on Monday the Republican presidential aspirants mostly agreed on the best way to solve our fiscal and economic woes: magic. Whenever moderator Wolf Blitzer or a Tea Party activist in the crowd or via video asked how exactly they would achieve their twin goals of balancing the federal budget and spurring job growth they had no actual answer. Instead, they seemed to think the tooth fairy would leave $1 trillion under their West Wing pillow.
Every Republican wants to cut taxes and yet somehow prices to reduce the deficit. So they were asked, as they should be, what exactly they would cut. You might think it’s bad if one of them offered, say, food stamps, for the chopping block, but at least that would contain a proposal for progressives to engage. Instead they were even more mendacious by refusing to give an honest answer. Newt Gingrich ludicrously that there is enough waste, fraud and abuse to balance the budget without actually cutting any of the funding that finds its way to legitimate beneficiaries. Rick Santorum and Rick Perry both refused to say they would undo the massive Medicare prescription drug benefit enacted under President Bush, which Santorum voted for. In other words, they are all lying. Either they will increase the deficit or they will propose devastating spending cuts they were afraid to campaign on, or both.
“This country needs to wean itself from it’s heroin-like addiction to foreign oil,” said Jon Huntsman, when asked how he would lead economic growth as President. Huntsman opposes the sort of measures that would actually wean our addiction to oil by taxing its consumption. Increasing domestic production, which the Republicans all favor, does not actually eliminate our dependence on oil, “foreign” or otherwise. And that’s only partially because we don’t actually have as much oil on U.S. territory as we consume. It’s because oil is a fungible commodity, and Exxon Mobil isn’t going to give the oil it drills in Alaska away to Americans for free. It’s a global market, and increased demand in China and India, or an interruption in supply from Venezuela or Saudia Arabia will increase the global price that we pay for oil, wherever it happens to have been drilled.
“He had $800 billion stimulus in the first round of stimulus, it created zero jobs,” said Rick Perry. “This president does not understand how to free up the small business men and women… by lowering the tax burden. So, to be clear, Perry thinks tax cuts spur economic growth. But the Recovery Act, which consisted largely of tax cuts did not. Independent economists and the Congressional Budget Office estimate that it created or saved several billion jobs. Blitzer followed up by asking whether Perry think tax cuts need to be paid for with spending cuts, which Perry completely ignored with the non sequiter that people don’t want new spending.
Rick Santorum proposes eliminating the corporate income tax altogether, on the suspect premise that it will cause companies to increase domestic manufacturing. How he’d make up for the lost revenue is anyone’s guess.