“(S)uccessful debt reduction measures are mostly made of spending cuts rather than a mix of spending cuts and tax increases,” writes DeRugy.
DeRugy points to two budget sectors that are driving deficits and in need of deep reform, entitlements and government workforce costs.
DeRugy also argues for spending cuts over tax hikes, citing research by Obama advisers showing a tax hike equaling one percent of GDP reduces GDP by three percent and the fact private investment have more confidence in spending curbs over tax hikes — giving the economy a shot of badly-needed confidence.
You may read DeRugy’s full column at http://washingtonexaminer.com/give-spending-cuts-a-chance/article/2513583#.UKf-GYWXKGg.
Originally posted at the Libertarian National Campaign Committee.