Barro’s Fiscal Plan, Ctd.
He responds, writing that he would “be very interested to see a budget plan that (1) keeps the full Bush tax cuts and (2) gets the deficit down to a sustainable level (3) in a reasonable time frame so that (4) debt/GDP does not peak at an alarming level. I think that’s quite a tall order, which is why I haven’t seen such a plan. (You would need to cut federal spending by about 3.5% of GDP in 2020, or 15% of the total.)” I’d be interested in seeing that, too; I understand that Heritage is at work on such a proposal.