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Holtz-Eakin had the "Right Stuff" at CBO
Share / Recommend - Comment - Print - Tuesday, Dec 27 2005, 4:42AM

The Washington Note was the first to get out the news that Douglas Holtz-Eakin was leaving his post to accept a position at the Council on Foreign Relations.
Today, a talk that he recently gave at the New America Foundation was highlighted by the New York Times editorial writers as being the sort of "straight talk" that has largely disappeared from government agencies -- particularly from Republicans like Holtz-Eakin.
The Times writes:
As director of the Congressional Budget Office, Douglas Holtz-Eakin has been Congress's top economist, handpicked by the Republican leadership. Recently, he had some advice for lawmakers - mostly Republicans - who insist that more tax cuts will foster economic growth and raise tax revenue: "Don't even think about it."The occasion was the release of the agency's long-term outlook, which shows huge unending deficits. "You can't grow yourself out of this problem," said Mr. Holtz-Eakin. "It's just too big."
That's startlingly straight talk, given that Republicans are determined to pass tens of billions in unpaid-for tax cuts come January. But it is typical of Mr. Holtz-Eakin, who is retiring this week after three years as the director. In those years, he has delivered nonpartisan, data-driven research on some of the most controversial issues.
I'm glad that the New America Foundation was host to Holtz-Eakin's last major policy address in his official position.
However, he will be working on significant international economic policy questions at the Council on Foreign Relations and attempting to synthesize thinking about America's classic military, political, and economic dimensions of U.S. foreign policy -- much like the American Strategy Program at the New America Foundation is doing. I suspect that Holtz-Eakin and New America will continue to work closely together to generate sensible policy proposals for future governments.
Congratulations Doug.
-- Steve Clemons
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Clinton had a budget surplus because outlays were only 18.5% of GDP while Revenues were over 20% of GDP. Under Bush, outlays have risen to almost 20% of GDP and revenues look to be stabilizing at around 17.5% of GDP. Revenue collection for a couple of years was under 17%.
The only way to balance the budget is to collect as much in revenue as is spent. Fiscal irresponsibility will be the legacy of Mr Bush who has driven our national debt from about $5.6 Trillion to well over $8 Trillion and rising. This occurred during a period of economic expansion. Bush views the US Treasury and tax policy as one giant slush fund to reward his political supporters with special interest legislation, tax cuts and corporate welfare. No thought is given to the broad fiscal policy. Dick Cheney announced, "Deficits don't matter." This is the reason Paul O'Neill lasted such as short time at Treasury.
I wonder what the chances are of stopping the tax-cuts to the richest Americans. Sorry, all you wealthy ones, but I've always thought taxes were an investment in my country, in my kids' future. I like to pretend that all my tax dollars somehow go not to the DOD and Halliburton, but to the USFWS, to firemen, to educators...a fairy tale that helps me sleep at night...
My first encounter with Holtz-Eakin's in print -
"Social Security = Grenada"
"Medicare = Vietnam"
yikes !




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