Posted on 12/06/2011 6:35:47 AM PST by Vintage Freeper
Last week, the Senate rejected proposals by both Democrats and Republicans to pay for an extension of the 2 percent temporary payroll tax cut enacted a year ago. The Democratic plan to finance it with a 3.25 percent surtax on millionaires garnered significantly more votes than the Republican plan to cut the number of federal jobs and freeze the pay of federal workers. (Snip)
Republicans like to pretend that cutting spending is economically costless, even stimulative, whereas raising taxes in any way whatsoever is so economically debilitating that it dare not be contemplated. This view is complete nonsense. (Snip)
Careful studies by the Congressional Budget Office and others show that certain spending programs are highly stimulative, whereas tax cuts provide very little bang for the buck.
(Excerpt) Read more at finance.yahoo.com ...
Arguing that government spending is stimulative is non-sense. Government only decides where money is to be spent. It doesn't produce wealth at all, it simply dictates where it is to be wasted or consumed.
To actually grow the economy, it is necessary to save and invest in the means of production. Common sense (the thing Mr. Bartlett would have you abandon) says wealthy people are better savers and investors. Taking their savings and decreasing their investments can increase consumption (stimulation) in the short run, but it decreases production in the long run. Bartlett is arguing for a prescription for progressive impoverishment. His initials should be changed from BB to BS.
Bruce Bartlett didn’t recently join anything! He’s been on board for quite some time!
http://www.youtube.com/watch_popup?v=JY8LKII_MNA&feature=youtube_gdata_player
Taxes should NOT be raised on anyone, rich or poor, until the government gets its fiscal house in order. Too much wasteful spending, too much money is unaccounted for, too much pork spending, and government agencies growing and spending without oversight.
“To actually grow the economy, it is necessary to save and invest in the means of production. Common sense (the thing Mr. Bartlett would have you abandon) says wealthy people are better savers and investors. Taking their savings and decreasing their investments can increase consumption (stimulation) in the short run, but it decreases production in the long run. Bartlett is arguing for a prescription for progressive impoverishment.”
It is worth repeating.
“To actually grow the economy, it is necessary to save and invest in the means of production. Common sense (the thing Mr. Bartlett would have you abandon) says wealthy people are better savers and investors. Taking their savings and decreasing their investments can increase consumption (stimulation) in the short run, but it decreases production in the long run. Bartlett is arguing for a prescription for progressive impoverishment.”
It is worth repeating.
Whatever happened to the Constitution that says the government must treat each and every citizen exactly the same? It does not allow for “progressive taxes.” Neither should we.
The house is on fire. Tax increases of any kind are more fuel. When the house is burning, throwing in fuel is not balanced.
Only spending cuts will reduce the flames. A balanced approach is to cut spending everywhere.
“Careful studies by the Congressional Budget Office ...”
Like asking Dracula to study the benefits of blood-letting...
Government spending and borrowing is paid for by the children-
what kind of society thinks it “compassionate” to charge children for their food?
“Taxes should NOT be raised on anyone, rich or poor, until the government gets its fiscal house in order. “
The Republicans are going to be hurt badly over the payroll tax issue.
The Republicans want to effectively raise taxes on working people. However, they fight tooth and nail to keep from raising taxes on the rich.
If consumers have less money, that will hurt the economy just as taking money from the “job creators”. By the way, where are those jobs? Oh, I forgot, India and China.
CUT the pay of federal workers.
The message that Republicans ought to be getting out is that no taxes without attendant cost cutting. But the whole environment in Dc is against that. The region around DV is the only “growth areas” in the country, at least for the housing market. A ten-percent reduction in wages for government workers would crash that economy. But all across government, there is a growing obsession with additional controls on the citizenry. Really the only thing that government can do is to make more law as they desperately keep digging deeper.
If a blue collar worker can pay a set percentage of their 5 digit income to taxes. Then a white collar worker can pay the same percentage on their 7 digit income.
“The Republicans are going to be hurt badly over the payroll tax issue.”
That’s true. But only because the dumb masses believe that they are owed property from the wealthy. The ‘Zero Sum’ propaganda works well with Stupid voters.
Raising taxes on the ‘rich’ will not increase revenue. But in the eyes of the collectivist failures, it’ll make them feel better.
(See Romer’s analysis on raising taxes 1% results in 3% decrease in GDP. There will be a negative reaction from those who understand how to create value.)
‘Thou shalt not covet’
“The Republicans are going to be hurt badly over the payroll tax issue.
The Republicans want to effectively raise taxes on working people. “
The Republicans’ way of paying for the payroll cut is better. They only get hurt because the media falsely portrays them as against the cut. Everything is their fault.
Better to just send checks to these people.
Since the GOP appears to lack any stomach for real spending cuts, I’m afraid that’s where we are headed.
A VAT and a Tobin Tax are my predictions.
“Raising taxes on the ‘rich’ will not increase revenue. But in the eyes of the collectivist failures, it’ll make them feel better.”
I would grant that there is some of that. I’m really focused on independents, the registered Democrats are no concern, as they are already lost. But, the average independent is a casual observer. What that casual observer sees is the GOP fighting to the death to avoid raising taxes on the wealthy, while fighting to negate a tax cut for the working class.
That won’t play well in Peoria.
The other message: A simplified tax code with low tax rates is best for all, and will alleviate being at the mercy of Democrats passing legislation every year.
“The Republicans’ way of paying for the payroll cut is better. “
All politics is local... the only economy that matters is the individual’s economy.
With that in mind, an independent sees a GOP that will shut down the government over taxes on the wealthy. But, when it comes to taxes on that independent, that person’s personal taxes, the GOP will fight to let them go up.
You may scoff, but symbolism matters. And if I’m making $50k and suddenly it becomes $49k, and it’s substantially because of the GOP. I know who I’ll punish.
“I’m really focused on independents”
Listen to Obama’s ‘New Nationalism’ speech today. If the people can be bribed with their own money, this country deserves what is going to happen to them.
The Democrats are the best at framing the arguments. The American Voter do not understand the historical consequences of collectivism. The Corporatism that the Obama administration is enacting no different from facism of old. Enjoy your chains.
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