Cato Policy Analysis No. 43 October 26, 1984

Policy Analysis

The Mondale Tax and Budget Plan

by David R. Burton

David R. Burton is an economist at the Tax Policy Center of the U.S. Chamber of Commerce.

Executive Summary

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.

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