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    Friday, August 13, 2004

    Spendthrift: A cost analysis of Kerry's proposals finds them very expensive, indeed, with the lion's share going to healthcare:

    Our best estimate is that Kerry's proposals will add up to between $2 trillion and $2.1 trillion over the next ten years. Since the revenue from his tax proposals relative to the current baseline is actually negative, this implies that the Kerry proposal would increase the deficit by perhaps as much as $2.5 trillion over the next ten years.

    On August 3, 2004, the Kerry campaign responded to criticisms such as this with a revised budget plan. The main difference between the first and second plans is that the campaign now claims to be able to save about $300 billion from eliminating corporate welfare. Even if we include this rather implausible savings in our estimate, the net increase in the deficit associated with Kerry's proposals is on the order of $2.2 trillion.

    What would he spend the money on? According to our analysis, roughly half of this additional spending is attributable to Senator Kerry's health care proposals that would add more than $900 billion in federal outlays. Education expenditure accounts for nearly one quarter of Kerry's new spending, with almost $500 billion added over ten years. A $400 billion expansion of military personnel and benefits for veterans comprises most of the remainder of Kerry's spending plans, with the balance distributed among numerous social programs and increases in international aid.


    And if Kerry's voting record is any indication, he'll be cutting money from defense and intelligence to help pay for it. We really need to ask ourselves if that's something we can afford, or even need.



     

    posted by Sydney on 8/13/2004 12:32:00 PM 0 comments

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