Tax Policy:: McCain, Obama Get An Incomplete

The Concord Coalition is about as good as it gets in assessing fiscal policy and proposals of our debt-ridden Federal government. Here's their reality check on the challenge the next President will confront:

"One thing is clear: the status quo is not acceptable. The next President will inherit a fiscally lethal combination of changing demographics, rising heath care costs, and falling national savings. The public should take care not to buy the proposals of Presidential candidates that either ignore the magnitude of the long-term fiscal challenge or lock candidates into positions that make the problems insoluble. Improving the nation’s long-term fiscal outlook will require hard choices on spending and tax policy."

Most independent assessments show that both Obama and McCain's proposals would result in more deficits. In particular, McCain's proposal to renew tax cuts aimed mostly at the wealthiest Americans and to abolish the Alternative Minimum Tax result in deficits in the range of $5 billion. His vague talk about eliminating earmarks and cutting non-essential spending is simply not persuasive. Obama's proposals offered to date---including tax cuts for middle and working-class Americans---are estimated to generate a lesser deficit, but a major one nevertheless.

There are times when deficit reduction is not the single most important fiscal objective. Nevertheless, less rhetoric and more "hard choices" are essential to the future of our children and grandchildren.