Washington's Budget Binge: Getting Even Worse

Publication Date: August 1992

Publisher: Heritage Foundation (Washington, D.C.)

Author(s): Daniel J. Mitchell

Research Area: Banking and finance

Keywords: Budget

Type: Report

Coverage: United States

Abstract:

The lesson found in this year's Mid-Session Review of the Budget is clear. Raising taxes to reduce the budget deficit only makes fiscal matters worse and undermines the economy. If similar policies are pursued in the future, the U.S. economy will continue to deteriorate. If, however, policy makers in the executive and legislative branches of the federal government recognize the lessons of the 1990 budget agreement, they will work together to reduce both taxes and spending. Then the economy will prosper and the budget deficit will shrink.