A look at budget balancing, tax cuts

Marketplace Staff Sep 15, 2010
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A look at budget balancing, tax cuts

Marketplace Staff Sep 15, 2010
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TEXT OF INTERVIEW

BILL RADKE: Let’s say good morning to Diane Lim Rogers. She’s chief economist at the Concord Coalition, a nonpartisan group dedicated to a balanced budget. Good morning, Diane.

DIANE LIM ROGERS: Hi Bill, thanks for having me.

RADKE: Sure. So the Tea Party got another victory last night
against a moderate Republican over in Delaware. Overall, how does the voting affect your top priority — a balanced federal budget?

LIM ROGERS: Well, I actually think it’s bad news for a couple of reasons. I think first of all, the pool of the moderate members of Congress seems to be rapidly dwindling. And, of course, we need people in the center to work on bipartisan policies that would actually achieve some fiscal discipline because that’s what it takes is some balance on both sides, some cuts in spending and some increases in taxes. I also think the Tea Party in particular, their message has been primarily low taxes. They also argue that they’re for a low deficit, but unfortunately they don’t really seem to be proposing spending signs, policies, that would actually do much to help that equation.

RADKE: Well I think the argument is that cutting taxes would force politicians to find spending cuts and that tax cuts are exactly what the economy needs right now. What do you think?

LIM ROGERS: Well, first of all, we’ve experienced most of the tax cuts we’re contemplating continuing over the past decade in the form of the 2001-2003 tax cuts. It didn’t work to starve the beast over the past 10 years, so I don’t know why it should work going forward when our spending needs are just going to grow.

RADKE: Diane Lim Rogers, that’s our time. Chief economist at the Concord Coalition and she blogs at EconomistMom.com. Thanks Diane.

LIM ROGERS: OK. Thanks Bill.

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