On September 10, 1984, Walter Mondale unveiled a tax andbudget plan to reduce the federal deficit by two-thirds. Theplan, which was issued in the form of a news release, offersnothing new or original--simply more of the traditional liberaleconomic policies of high taxes and increased federal spending.The plan envisages higher spending and dramatically highertaxes. Furthermore, many of the claimed savings and some ofthe increased revenues are illusory.
The Mondale plan's alleged effect on the FY 1989 budget isset forth in Table 1. An analysis of each of the items listedthere will illustrate the dubious nature of much of the plan.