As details of the GOP counter-proposal trickle out, here are some initial thoughts.

Positives: Cuts personal and corporate taxes, rescinds much of the stimulus bill, freezes current domestic spending, and overhauls Medicare

Negatives: No cuts in military spending, and projects over $500 billion budget deficits for years to come

America, take your pick. $500 billion budget deficits or $1-$2 trillion budget deficits for the next decade.

While lower personal and corporate taxes are critical elements to an economic recovery, the Republicans still don’t get it. The real problem is overspending. Whether it’s a $2 trillion budget deficit or a $500 billion budget deficit, the excess spending is obscene.

The Republicans’ real dilemma is military spending. By some accounts, the US spends around $1 trillion a year to maintain its global empire of 700+ bases in 100+ countries around the world. Several economists estimate that the ongoing Afghanistan and Iraq wars have cost America over $1 trillion alone in the last eight years.

Something has to give. If Republicans want to restore fiscal responsibility, they will have to propose far more than just moderate cuts in domestic spending. They will also have to tackle the gargantuan costs of a global empire. If they choose to maintain the size and scope of the empire, then, in order to propose anything close to a balanced budget, they will have to propose much, much deeper domestic cuts. So far, they don’t have the stomach to do so.

At some point, both Republican and Democratic leaders will have to explore other, more cost effective ways to defend America. Currently, Democrats want to substantially boost domestic spending, while maintaining extraordinarily high levels of military spending. Republicans want to moderately cut domestic spending, while maintaining extraordinarily high levels of military spending. Neither approach will produce balanced budgets or make a dent in our national debt.

Read the article here.