Can Republicans Talk? (Thomas Sowell)

Jewish World Review ^ | November 30, 2010 | Thomas Sowell

[jazusamo]

 

The biggest battle in the lame duck session of Congress may well be over whether or not to extend the Bush administration's tax cuts, which are scheduled to expire in January. The fact that this decision has been left until late in the eleventh hour, even though the expiration date has been known for years, tells us a lot about the utter irresponsibility of Congress.

Neither businesses nor individuals nor the Internal Revenue Service will know what to do until this issue is resolved. In a stalled economy, we do not need this prolonged uncertainty that can paralyze both consumer spending and investment spending.

Republicans want the current tax rates to continue and Democrats want only the current tax rates for people earning less than "the rich"-- variously defined-- to continue, with everyone making more than some specified income to have their tax rates rise next year.

What makes predicting the outcome of this battle very iffy is that Republicans won a big majority in the House of Representatives in the recent election, but the tax cuts are scheduled to expire before the new members of Congress are sworn in-- and the Democrats have a big majority in both Houses of Congress in the lame duck session, where this issue will be decided.

Theoretically, the Democrats could win, hands down, since they have the votes...

[jazusamo]

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Thomas Sowell

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[econjack]

What amazes me is that Congress is even contemplating not extending the Bush tax cuts. Given monetary policy is totally ineffective in the classical Liquidity Trap and the stimulus package didn't work, tax cuts are the only tool left. And when you hear some Lib tell you they can't "afford" a tax cut because of the budget deficit, punch him in the nose and tell him to: 1) cut spending to reduce the deficit and 2) point out that after every major tax cut (e.g., Kennedy, Reagan, Bush) gov't tax receipts increased. Then...punch him in the nose again just for the heck of it.

[samadams2000]

Paging Leader Boehner....please pick up the white courtesy phone. Please leave the tanning booth immediately..the American people are watching you..

[jazusamo]

You’re exactly right! Today Neil Cavuto had some liberal woman on his show talking about this and she was the typical ‘raise taxes’ liberal hack, she had Zer0’s talking points down pat.

Cavuto literally gutted her with the questions he put to her and it didn’t look like she knew she’d been had. LOL!

[jazusamo]

Amen!

[econjack]

I can understand gov't spending for "public goods" as put forward in the Constitution, but what Congress has done recently is a travesty. The idea that they think they know how to spend my money better than I do just simply pisses me off.

[Cobra64]

"...the Republicans have the stronger case. But that doesn't matter, unless they make the case, which they show little sign of doing."

Paging Leader Boehner....please pick up the white courtesy phone. Please leave the tanning booth immediately..the American people are watching you..

Typical inside the beltway Republican:

[dufekin]

You unfortunately base your remarks on an apparently inaccurate premise: that the Congress desires economic growth in America. The House of Representatives passed a bill last year to return carbon dioxide emissions (and thus gross domestic product) per capita by 2050 to a level unseen since 1874—with such enthusiasm that they actually passed it before even writing it. The Senate could pass this bill at any moment, and the President almost certainly would sign it into law triumphantly. And that’s not the only economy-killing legislation passed this biennium. Forget not the now-impending nationalization of the entire health care sector, fully one-sixth of the American economy.

Given that a majority in the Congress deeply desires the recession to persist and intensify as a defining feature of American life for a generation or longer, why would the Congress dare not to allow a tax increase to stifle business amid considerable uncertainty?

By the way, the stimulus package ranks among the great successes of this Congress and Presidency. The Treasury successfully spent vastly more money (that it didn’t have) than any historic American federal government with the possible exception of the World War II years. Just to get all that money, the federal Treasury had to tax, borrow, or increasingly print at an unprecedented rate during peacetime. Moreover, the stimulus package didn’t stimulate economic growth but did stimulate “recession and redistribution,” compliments of big government.

Given that American entrepreneurs continue to try to create prosperity in those sectors not yet outlawed, tax increases may be the only tool left to castigate the economy back into semi-permanent recession for a few more years.

So why does the Congress deliberately try to ruin the American economy and suppress prosperity? Easy. Permanent recession creates desperation, which in turn causes people to seek government welfare benefits and consequently sink into dependency on big government. A skilled professional welfare recipient easily can receive more government welfare benefits than a worker actually earning a $60,000/year salary through hard work can take home after taxes and health insurance and other government penalties imposed on working stiffs. Intelligent skilled professional welfare recipients, however, will reelect their distinguished members of Congress to maintain and enhance their capacity to receive even more government welfare benefits.

[Rocky]

“Where are the articulate Republicans?”

Indeed.

[DustyMoment]

I think the Bush tax cuts will expire because the Congress will be in a standoff over this issue.

Those who expect the ‘Pubbies to step in and save us from the EVIL Democrats need to take another look. The ‘Pubbies had years to make the tax cuts permanent when they controlled all three branches of government and they sat on their hands. They will do nothing now and thye tax cuts will expire.

[Gilbo_3]

thanks jaz...

too bad our 'leaders' are deaf...and greedy...

[Verginius Rufus]

When did the Republicans last control all three branches? Sometime in the 1920s? Or during the 19th century?

Of the 8 years that George W. Bush was President, the Republicans controlled both houses of Congress only 4 years, and even then they did not have enough votes to push things through the Senate, where 60 votes were needed (hence the "Gang of 14" deal to induce the Democrats to let some of Bush's judges get confirmed).

[george76]

We know that the Jimmah’ luxury taxes failed to produce the expected tax revenues plus killed jobs in towns with shipyards and...

Businesses often plan years in advance, so that even extending the Bush tax rate cuts will not be immediately impactful. Further evidence that 0 and pals have no business experience [ or worse ].

Using the Irish Double, tax free foundations, and other tricks, his rich pals only pay taxes when they want to.

[boop]

The reason the economy is in the toilet is uncertainty. If you were “rich”, would you gamble that your taxes will stay the same or go up? Would you risk hiring people, or expanding your business not knowing this? Extending the Bush tax cuts would release this fear and we could get America working again. I’ve never gotten a job from a poor man. In fact, all of my working life has been courtesy of “the rich”.

[Lancey Howard]

...and Democrats want only the current tax rates for people earning less than "the rich"...

It's as if the rats learned absolutely nothing from their 1990 "luxury tax" on boats that put 120,000 low-to-moderate income shipbuilders out of their jobs because the wealthy decided not to pay the tax.

[goldstategop]

You know the Stupid Party... it couldn’t explain the case for tax cuts out of a paper bag.

I don’t think we’ll see the Bush tax cuts renewed in the lame duck session even though they’re vital to help boost the revival of the economy.

[Gene Eric]

>> Sowell: But where are the articulate Republicans?

Looking past the “rock stars” like Palin, Gingrich, & Rove, there are actually many well spoken, intelligent Republicans that are no doubt busy working in the Congressional trenches. Of course Sarah, Newt, and Karl are non-representing voices, but among the loudest yet.

Sowell is absolutely correct when he says that facts do NOT speak for themselves. The new GOP must give 110% making sure that not only does it follow through on promises, but brings the agenda to the foreground and continuously collaborates with the constituency.

[BobP]

Paging Leader Boehner....please pick up the white courtesy phone. Please leave the tanning booth immediately..the American people are watching you..

--------------------------

Can Republicans Talk? Yes but not the way I want them to!

We need another election, or two, to clear the deck.

[rockinqsranch]

Thanks for the ping jaz. Hopefully we can encourage the Republicans to articulate Conservative values in the 112th.