Tax cuts contribute to deficit problem

The budget battle in Washington appears to be coming down to one fundamental issue. The Democrats say that increasing revenues has to be part of the solution and the Republicans are saying that any tax increase is “off the table.”

Let's look at what got us into this situation by comparing total tax revenue and total government spending, expressed as a percentage of the gross domestic product (GDP) in 2000 and 2010.

In 2000, total federal spending was 18 percent of the GDP and total revenue was 20.3 percent of the GDP. You will recall that we had a budget surplus that year.

By 2010, total federal spending rose to 23.8 percent of the GDP and total revenue declined to 14.9 percent of the GDP (data from http://www.usgov ernmentspending.com).

Spending went up primarily due to two unfunded wars and the Medicare prescription plan that was not funded. What many people do not know is how much the revenue went down, primarily due to the Bush tax cuts. Many say we do not need to raise taxes. I say look at the numbers and face reality. Tax cuts are a major contributor to our deficit problem and at least partially reversing them has to be part of the solution. No politician can claim to be fiscally responsible without acknowledging this reality.

Richard Greer

Cedar Rapids