Rod Grams: “I rise today to dispell a misconception that has become popular in Washington--the idea that tax cuts cannot go hand in…”

“I rise today to dispell a misconception that has become popular in Washington--the idea that tax cuts cannot go hand in hand with deficit reduction. There are some who suggest that the massive deficit we have today is due to the tax-cutting policies of the 1980's. What they ignore is the fact that during the 1980's, the number of jobs increased, the amount of taxable income increased, and as a result, tax revenues increased--all due to the Reagan tax cuts. What did not happen were the spending cuts promised by Congress but never delivered. In fact, spending during the 1980's increased significantly more than the increase in revenue, leading directly to the deficit we face today. This year we are on the verge of making the same mistake, but in the opposite direction. This time, Congress may pass spending cuts without providing the tax relief we promised the American people. One of the worst ideas I have heard during the budget debate, and frankly, it came from a member of my own party, was the idea of a deficit lockbox to stall enactment of the $500 per-child tax credit.”