WE DON’T HAVE A SPENDING PROBLEM, WE HAVE A REVENUE PROBLEM.
In the last few years, most of the deficit reduction we have seen and that is scheduled to occur has come from SPENDING CUTS, particularly cuts in spending that hurt the most vulnerable Americans—low and moderate income families most affected by the recession. At the same time, we have continued tax policies that significantly REDUCE REVENUES while primarily benefiting the richest Americans and corporations, those least affected by the recession and who have benefited the most from the run up in the stock market.
Take a look at these charts prepared by the Center on Budget and Policy Priorities. If you can't see the charts, go here: http://www.cbpp.org/cms/?fa=view&id=4043
(1) More than three-quarters of deficit reduction in recent years is a result of cuts in spending, less than a quarter came from revenue increases.
(2) There have been three waves of cuts in non-defense discretionary spending in recent years, each one more severe than the previous.
(3) Non-defense discretionary spending is set to reach historic LOWS as a percent of GDP if nothing changes.
(4) House Republicans have aimed spending cuts primarily at programs that serve people with low to moderate incomes, those Americans in most need of assistance and who are still suffering from the recession.
(5) Tax Expenditures (deductions and tax loopholes that significantly reduce revenue collections) which go primarily to the rich and corporations are the largest category of non-defense spending, larger than spending on Social Security, Medicare and Medicaid, and defense and non-defense discretionary spending.
These charts tell the true story. The United States doesn't have a SPENDING problem. If anything, we have cut spending--particularly spending to help our fellow Americans who are most in need--too much. We have a REVENUE problem. We aren't collecting the revenue we need to collect AND one of the major contributors to our REVENUE problem are tax loop-holes and other tax expenditures that are no longer needed and that benefit primarily large corporations and the richest Americans.
Read more and see the real FACTS about our REVENUE problem here: http://www.cbpp.org/cms/?fa=view&id=4043