Are the Bush Tax Cuts Paid For?

In the middle of a national debate about the Bush tax cuts that are set to expire at the end of the year, and what it would cost to make them permanent, NBC's David Gregory set out to determine whether extending the cuts would add to the deficit. On Meet the Press Sunday, Gregory got right to the issue with House Minority Leader John Boehner. After showing a clip in which former Fed chairman Alan Greenspan argued the U.S. couldn't afford to extend the tax cuts, Gregory pressed Boehner, who showed off what one might call the Washington two-step—avoiding the question five times:

GREGORY: Leader Boehner, he puts it right to you.

BOEHNER: The only way we're going to get our economy going again and solve our budget problems is to get the economy moving, get more people back to work where they can care for their own families and begin to expand the tax rolls to bring more revenue to the federal government. And what we have to do is we have to get our arms around the spending spree that's going on in Washington, D.C.

GREGORY: But Leader Boehner ...

BOEHNER: That's the only way we solve the budget problems.

GREGORY: ... I'm sorry, you're—that—you're not, you're not being responsive to a specific point, which is how can you be for cutting the deficit and also cutting taxes, as well, when they're not paid for?

BOEHNER: Listen, you can't raise taxes in the middle of a weak economy without risking the double dip in this recession. President Obama's favorite Republican economist, Mark Zandi, came out several weeks ago and made it clear that raising taxes at this point in, in the economy is a very bad idea.

GREGORY: But do you agree that tax cuts cannot be paid for ...

BOEHNER: You cannot balance the budget without a ...

GREGORY: But tax cuts are not paid for, is that correct?

BOEHNER: I am not for raising taxes on the American people in a soft economy.

GREGORY: That's not the question, Leader Boehner. The question ...

BOEHNER: And the people that the president wants to tax ...

GREGORY: ... is, are tax cuts paid for or not?

BOEHNER: Listen, what you're trying to do is get into this Washington game and their funny accounting over there. You cannot get the economy going again by raising taxes on those people who we expect to create jobs in America and to get the economy going again. If we want to solve the budget problem, we've got to have a healthy economy and we have to get our arms around the runaway spending that's going on in Washington, D.C.

GREGORY: I just want to clarify this. I mean, if you—I'm relying on what chairman Greenspan said. Maybe—if you're accusing him of funny Washington games. He says that tax cuts that aren't paid for are not—they are not cutting the deficit, that they are not actually paid for, it's borrowed money. And so do you believe tax cuts pay for themselves or not?

BOEHNER: I do believe that we've got to get more money in the hands of small businesses and American families to get our economy going again, and the only way to get that economy going again is to do that and to get our arms around the spending.