Plan to Reduce Deficit: Give Me $1 Billion

Greg Mankiw has a way to reduce the deficit that Obama and the Democrats should love.

The essence of the plan is the federal government writing me a check for $1 billion. The plan will be financed by $3 billion of tax increases. According to my back-of-the envelope calculations, giving me that $1 billion will reduce the budget deficit by $2 billion.

Better yet, give him $1 trillion and raise taxes by $2 trillion. If it works for Obamacare, it should work for anything.