In a speech to the Virginia Chamber of Commerce last week in Washington DC, Rep. Scott said: “Most of the budget discussion today is on who will get a tax cut, without much discussion on how we will pay for those tax cuts.
The Simpson-Bowles Commission set a $4 trillion, 10-year deficit reduction goal. This target number is the same as the cost of extending all the Bush-era tax cuts for another decade. In other words, if we let all of the Bush era tax cuts expire, for incomes over $250,000 and incomes under $250,000, the 2% and the 98%, all of them, without any sequester, you would achieve the $4 trillion goal for deficit reduction. In fact, we have already cut $1.5 trillion in spending, so letting all of the tax cuts expire at this point would produce $1.5 trillion more in deficit reduction than the original Simpson-Bowles goal.
If we let the tax cuts expire, to avoid any short term recessionary effect, we should spend a significant portion of the new revenue on infrastructure, roads and bridges, school construction, summer jobs and other job creating initiatives, or send out a tax rebate to all taxpayers. If were to spent the additional revenue of $400 billion on creating jobs at $50,000 each, we could create 8 million jobs, and the recession would be over by the Fourth of July. “