Jonathan Chait: Bankrupted by voodoo economics

While Republicans tax-cut and spend, research shows increases lead to reduced government.

May 14, 2006

IF YOU REMEMBER the 2000 election, you probably remember President Bush's warning about why we needed to cut taxes: If we did not return the surplus to the taxpayers, Washington would spend it. Well, we all know what happened next. Bush returned the surplus to taxpayers — and Washington spent the money anyway.

Conservatives have a number of analogies to explain why tax cuts will lead to spending restraint: Cut your child's allowance. Starve the beast. But the analogies are all wrong. The child has a credit card. The beast has a private meat locker. Washington can spend whatever it wants, regardless of how much it taxes.