Given all the screaming going on that Obama is increasing the national debt, it is enlightening to see that the independent Committee for a Responsible Federal Budget released a study today that estimates that the economic plans proposed by Newt Gingrich, Rick Santorum, and Mitt Romney would increase the debt by between $250 billion and $7 trillion over the next nine years.
Newt Gingrich’s plan would increase the debt by a staggering $7 trillion, taking it to 114% of GDP (it is 70% today and historically averages 40%). And that’s after cutting funding for Medicaid by half. But Gingrich claims that his plan would balance the budget in his first term, because cutting taxes would create jobs. Yeah, we’ve heard that one before.
Rick Santorum’s plan would increase the debt by $4.5 trillion, to 104% of GDP.
The least awful plan is Mitt Romney’s, which only adds $250 billion to they debt, mainly by lowering corporate taxes. But not included in the current analysis is Romney’s new plan, released yesterday, which cuts marginal tax rates for individuals by 20%. This new plan is estimated to raise the debt by $2.6 trillion.
The only Republican proposal that would reduce the debt is the one from Ron Paul. But he does this by eliminating five federal departments, including education, commerce, and energy.