On September 10, 1984, Walter Mondale unveiled a tax and budget plan to reduce the federal deficit by two-thirds. The plan, which was issued in the form of a news release, offers nothing new or original—simply more of the traditional liberal economic policies of high taxes and increased federal spending. The plan envisages higher spending and dramatically higher taxes. Furthermore, many of the claimed savings and some of the increased revenues are illusory.
The Mondale plan’s alleged effect on the FY 1989 budget is set forth in Table 1. An analysis of each of the items listed there will illustrate the dubious nature of much of the plan.