-
Earth Day 2013: The Papal Edition
April 22, 2013 | 22 comments
-
Is God a Methodist?
April 15, 2013 | 57 comments
-
A Status Quo Budget at Best
April 11, 2013 | 9 comments
-
Marriage Issue Will Not Go Away
April 2, 2013 | 87 comments
-
Shakespeare’s Henry V Commands the Stage
March 11, 2013 | 10 comments
The Public Policy
Why Raise Taxes Now?
They’re going up anyway, says the President.
Why on earth should the Republicans swallow a tax increase now? Having just walked away from the budget and debt limit negotiations, the GOP leadership simply ratified what they have been saying all along. They basically told Vice President Biden and the Democratic congressional leadership that they really mean it this time.
There are, of course, traditional supply-side arguments against raising taxes for which readers can find ample justification from the ranks of Larry Kudlow, Arthur Laffer and the books of the late, great Jack Kemp.
Moreover, Grover Norquist of Americans for Tax Reform is right to keep the focus on spending, rather than the deficit per se, since you can balance the budget as easily through tax increases as with spending cuts, the former being bad, the latter good.
While I admit to being perplexed over the very complex theological debate, ongoing, between Mr. Norquist and the GOP House caucus on one side, and Senator Tom Coburn (R-OK), Martin Feldstein, and the Wall Street Journal on the other, as to the proper handling of “tax expenditures” or tax breaks, especially absurd ones such as ethanol credits, I see really no need to go there given the numerous targets of opportunity for reductions in both mandatory as well as discretionary spending at least at this early juncture.
In view of the recessionary hangover the nation is still experiencing, long-term cuts in entitlement spending probably make more sense than relying exclusively on cuts in discretionary spending, again, for now at least. Alas, there is little political will for such an approach.
But the most compelling reason not to cave on the matter of increasing taxes, or even tax expenditures, at least for the nonce, is that our Commander-in-Chief has forthrightly and repeatedly indicated his intention, if re-elected, to let the Bush tax cuts — all of them — expire.
Back in February, when he released his budget for 2011, President Obama said, “We extend middle-class tax cuts in this budget,” but “we will not continue costly tax cuts for oil companies, investment fund managers, and those making over $250,000. We just can’t afford it.”
Of course you can’t when you are spending as if there is no tomorrow and refuse to do anything about entitlements. Just tax the very people who provide the very things the country needs at this critical period in its economic history: energy, investment capital and small businesses, the engines of job creation. Right.
“I don’t see anything in the Democratic Party that says they’re not comfortable raising the top rates to the level they were in the Clinton administration,” stated the President. Well, that’s certainly true. Having agreed to a temporary extension of the Bush cuts, he and his party have drawn a line in the sand regarding any further extensions. In other words, he is just saying, “No.”
Returning to the current negotiations over the debt ceiling, this thought comes to mind: Aren’t the Republicans entitled to take the President at his word that he will allow taxes to rise drastically with the expiration of the Bush tax cuts? If so, shouldn’t that be factored into the negotiations, a chit for the Democrats, prospectively, so to speak? Assuming the President is a) re-elected and b) has something like enough votes in Congress to sustain his veto of further tax-cut extensions, why not keep the focus exclusively on spending cuts? After all, the Obama administration is obviously counting on this happening.
The truth is that the Democrats — the White House and the congressional wing — are hedging their bets. They understand that the President may or may not be re-elected. Still, there is no reason the Republicans should not articulate this very real possibility, for purposes of their negotiating position during these consequential negotiations. Taxes are going up. The President said so.
So there is no need to cave on this point now. In fact, the GOP should be reminding the public of this eventuality as it drives that hard bargain.
About the Author
G. Tracy Mehan, III served at the U.S. Environmental Protection Agency in the administrations of both Presidents Bush. He is a consultant in Arlington, Virginia, and an adjunct professor at George Mason University School of Law.
Bill Hussein O'Stalin| 6.24.11 @ 6:26AM
There are some pertinent questions to be asked at this juncture and they start with the last deal the Republicans cut.
The Republicans claimed they were going for 100 billion in cuts and nothing less.
The drama built, then we heard 66 billion was a sure thing. Then 33 billion was boasted about as the final figure.
Then, it was revealed that not only had the Republicans and Democrats not cut anything, there was a 3.3 billion increase in spending.
If this deal goes anything like the last deal, you have to ponder the negotiation skills of the Republicans.
Although Obama has claimed he will raise those taxes, he also claimed originally he was going to let the Bush tax cuts expire. Not only did he not do that, he actually proposed and followed through on a payroll tax cut which was another massive tax cut.
During the last election cycle it was Obama who stated that he was absolutely going to end the Bush tax cuts and McCain insisted that he was going to extend them. Irony?
Here's some more irony. As part of the tax deal Obama got to extend unemployment benefits, seemingly to infinity.
Obama has shown himself to be an astute politician seemingly changing on a dime which means he has to lie regularly.
And what's to come of his lies? He promised to close GITMO. It's still open and will most likely never be closed. Obama promised to bring terrorists to America for civilian trials. That hasn't happened. Obama promised to end the Bush tax cuts, that hasn't happened.
In essence, he appears to accomplish more by lying than the Republicans do by telling you their truths.
What this indicates is that Obama and his crew are hard bargainers and the Republicans, left to their own devices, claim victory when what they've achieved is defeat.
I can only ponder what lies ahead in this budget deal on the debt limit. Will the Republicans score big?
Just the other day House Administration tried to eliminate a piddling little federal agency called EAC (Budget 14 million) and failed.
There is a lot at stake in this debate but the Democrats cleaned the Republicans clock on the first go round.
What the public got was a lot of hubris and absolutely no substance.
One things clear. Taxes are not the answer. You could seize the wealth of every American and still not make a dent in the promises Washington has accumulated over several decades.
Within a few weeks we will know if the Ruling Class has pulled off another magic trick or has accomplished something of substance.
Michael Tomlinson| 6.24.11 @ 7:10AM
You’re too easily impressed by Barack Obama and his botched presidency. While I'd dispute that the intellectually challenged and opportunistic Obama is astute I’d concur that he’s a marvelous liar, but he’s a Democrat and that’s their favorite political contrivance.
The walkout is a good first move on the part of Republicans. Now we need to encourage them to ignore Obama’s slipperiness by telling the American public what’s going in the “negotiations.” Keeping the light of day on the tax sucking Democrats is as dangerous for them as Dracula.
Bill Hussein O'Stalin| 6.24.11 @ 7:30AM
What's not to be impressed about? He's beaten the Republicans to a pulp so far. When that stops and the Republicans come out on top everyone will see that. So far, the Republicans look weak walking away from the bargaining table.
That's not the cut of a winner.
By the way, I didn't say I was impressed. I'm relating the actual facts. Facts determine who won and lost. Give me some facts that show Obama hasn't come out on top in the deals so far.
Grzmlyk| 6.24.11 @ 12:14PM
Don't forget, though, he has the media wind at his back. The carefully manicured - and utterly artificial - zeitgeist they have created results in a a constant barrage impugning greedy, selfish, stupid, Neanderthal, "right wing extremist" Republicans who are trying to undermine fairness, equality and decency.
On the other hand, the media-inflated pop culture is only too happy to leave Obama's history and true personality shrouded in opacity and his lies unexposed.
The truth of Obama - his obnoxiousness, his shallowness, his puerile temperment, his utter ignorance, his narcisism, his incompetence, the destructive malevolence of his policies, the Marxist Keystone Kops that comprise his administration - all of these are rehabilitated by the propaganda arm of the Nanny State with a single-minded determination and homogenous sense of purpose that is, frankly, baffling.
And just as our founders saw a free press as essential to the accountability of government, today's reality is that the socialist press shields govenment from accountability.
At least the Soviet Union had to force the press to create hagiograhpic portrayals of its leaders; our media is complicit in treason.
However, I will say the GOP swims in the same political sewer as Democrats, and that means they are generally only too happy to play Santa Claus too. And since, as a culture, America has willfully chosen to embrace an utterly false consciousness (i.e., the gravy train will never end, collapse at home is unthinkable, existential threats from without are not possible), time and again, the feckless Repbublicans get swept up in the tide of folly.
Bill Hussein O'Stalin| 6.27.11 @ 6:09PM
Well, well:
President Obama, seeking a Republican agreement to raise the nation's $14.3 trillion debt ceiling by Aug 2, will not insist that any deal include an end of President Bush's controversial tax rates on the wealthy.
Obama's tactics are coming into clearer focus: they involve seeking higher taxes not on a broad swath of high income earners but on a narrower band of the super rich, such as owners of private jets. This means that those who earn $250,000 have got a reprieve.
http://thehill.com/homenews/ad.....debt-talks
Kenny| 6.24.11 @ 6:46AM
Democrats loath spending cuts because government spending is exactly why a great proportion of their constituency votes for them.
For many Americans who are otherwise okay except for their addiction to government spending, with no government money flowing their way, they ask: "Why continue to vote for the party that's the home of radical homosexuals & feminists, America-haters, militant secularism?
lydia | 6.24.11 @ 8:45AM
Seeing as how the Government is already BROKE, it's only common sense that they have to CUT WAY BACK on their spending.
I am a 28 years old doctor, mature and beautiful.and now I am seeking a good man who can give me real love , so i got a username Andromeda2002 on--s'e'ek'c'ou'ga'r.c óm--.it is the first and best club for y'ounger women and old'er men, or older women and y'ounger men,to int'eract with each other. Maybe you wanna ch'eck 'it out or tell your friends!
darudz| 6.27.11 @ 2:46PM
Lydia,
Stop it!
Timothy L. Pennell| 6.24.11 @ 7:01AM
What's the problem? Democrats want to RAISE TAXES. And, then they want to SPEND more money. That's why they're called: TAX and SPEND Liberals. Because, that's what they are. The same goes for: WEAK ON DEFENCE and SOFT ON CRIME. That's what they are. Name something they have done, since Jan. 2009, that WASN'T about TAXING and SPENDING.
This isn't Rocket Science. In fact, it's really quite simple. Cut EVERYTHING by 10%, across the board. American families have to make CUTS, all the time. WE THE PEOPLE can't print money. WE THE PEOPLE cannot CONFISCATE MONEY, from our neighbors. We can only, CUT our Expenditures, or go broke.
Seeing as how the Government is already BROKE, it's only common sense that they have to CUT WAY BACK on their spending.
Does ANYONE read History, anymore? If we do not LEARN from it. We are DOOMED to repeat it.
10%.
Michael Tomlinson| 6.24.11 @ 7:19AM
Treasury Secretary Timothy Geithner told the House Small Business Committee on Wednesday that the Obama administration believes taxes on American small business must increase so the administration does not have to “shrink the overall size of government programs.” Geithner said, “But just to put it in perspective, it's important to recognize why are we doing this. You know, our deficits are 10 percent of GDP, higher than they've been since any time in the postwar period really. We have a big hole to dig out of, and we have to figure out how to do that in a way that's balanced, good for growth, fair to people as a whole.”
According to historical budget tables published by the White House Office of Management and Budget, federal spending has climbed from $2.89 trillion in 2009—the year President Obama took office—to $3.82 trillion this year, an increase of approximately $930 billion. But tax cheat little Timmy Geithner can’t cut the budget, because it would shrink the size of government programs. Duh that's what Americans are demanding Timmy boy.
Handy| 6.26.11 @ 1:57PM
There he goes again. Digging out of holes.
Step away from the shovel, Timmy. Now, go with the nice men in the white coats.
martin j smith| 6.24.11 @ 8:04AM
Issue one: Boehner: If he skrews up as he did in the last deal--he should asked to resign.
Issue two: I am really puzzled but no matter--It is quite clear to me that the Socialists want us to go down. They have no intention of making ANY KIND OF HELPFUL DEAL WITH ECONOMY AT ALL. Their behavior from backward to forward will show once and for all that YOU CANNOT DO ANYTHING MEANINGFUL WITH THEM BECAUSE THEY WANT ANY TALKS TO CAOLLAPSE AND TYHEN BLAME REPUBS. That IS THEIR GOAL PERIOD. Its all about 2012 and nothing more. To heck with the nation.
NO I DO NOT BELIEVE THEM GIVE A CRAP ABOUT THIS COUNTRY NOT ONE BIT. I sincerely hope someone in the Repub leadership (T ? ) takes the bully by the horns and CALLS THEM OUT ON THIS.
A. C. Santore| 6.24.11 @ 9:35AM
Of course they want our economy to crash.
They will then blame it on "the failure of capitalism" and use that to justify their beloved authoritarian government-controlled socialism (or whatever other name they choose to use).
Grzmlyk| 6.24.11 @ 12:26PM
And the media will provide ample assistance in blaming capitalism.
Funny how all of these liars are very well paid and live very un-egalitarian lives; but they are only too happy to tear the fabric of this country to shreds in order to assuage their vanity in the name of egalitarianism.
I say let's confiscate the wealth of everybody in the media FIRST. Since they seem to think serfdom is an idyllic existence, let's put them at the front of the line.
Mike Gabel| 6.24.11 @ 9:29AM
The argument for raising taxes is nothing more than a red herring, so that liberals can hide (and finance) their profligacy.
We are not in this period of stagflation because we don't pay enough in tax. Tax receipts are in line with historical percentages. Government spending, however, has increased dramatically. Couple that with the fact that our president believes in wealth re-distribution and an entitlement state, and its the perfect recipe for bankruptcy (or regime change).
"What kind of America do Americans want?" is the true argument.
Indiana Alex| 6.24.11 @ 9:57AM
I've really had enough of this nonsense about raising rates to Clinton levels. Liberals love to use partial truth when formulating the talking points for their minions to spew.
If one looks at the total picture, as one who actually participates in the economy must do, after the additional taxes and surcharges of Obamacare I come up with a top effective federal tax rate of 62%.
Of course this is not designed to bring in more revenue, but to create some misguided sense of fairness.
Wealthly trust fund liberals want most to close the gates of the country club. They believe there are plenty of rich people as it is, and it wouldn't be fair for the economy to produce more while there are so many obese poor people.
Liberals believe that income classification is static, but it is actually thier policy preferences that create an environment that discourages upward mobiliy, and favors dependency.
Everyone loses in an economy where there are numerous disincentives for earned income and investment - except of course the rich liberals who by definition are already rich, require very little income and look to others when determining what should be "fair".
russel| 6.24.11 @ 10:05AM
The only cut we the people see is the umbilical cord the pols have to their seats in Washington . Even talk about a tax increase sent me into a fit . It was on Drudge - taxing small buisness so the gov. wouldn't " shrink " . Yep , little Timmy thinks it's business ' job to keep the feds fed and prosperous . I'm still pissed . One tax and they're getting death threats . This depression has gone on long enough .
Oldefarte| 6.24.11 @ 12:17PM
G.Tracy, great article! I'll say the unsayable, in that he/Democrats will raise taxes [not just on the highest earners but on every income earner as well] IF HE/THEY ARE RE-ELECTED NEXT YEAR. Take it to the bank that your taxes will increase if you allow them to become re-elected. That simply is what Democrats do, and this guy is the epitome of same, since their very purpose is to provide governmental welfare benefits upon their indigent constituents and to force income earners to pay for same through forced taxiation. Democrats have no intention of allowing this budget/debt problem to be repaired by means of governmental spending reductions alone, since they believe it is taxpayers' moroal obligation to support their indigent constituents by means of taxiation. Charitable giving means nothing to them since same comes from the freedom of choice, whereas their governmental seizing of power allows them to betow these benefits arbitrarily through forced taxiation. Crawl to the polls next year and vote people, and VOTE REPUBLICAN if you know what good for your pocket books!!!!!!!!!
martin j smith| 6.24.11 @ 12:47PM
Rush L has suggested that now, Socialists are pinning the blame of the economy on the Republicans. Did you follow this matter ? He is not just making it up This has just started. So I think that Repubs who are afraid of attacking Socialists should be out as candidates--they are for me And, I mean attacking Obama directly. If the do not, they are stupid and may well lose.
Grzmlyk| 6.24.11 @ 2:29PM
They're all afraid to tell the truth, which is that, without almost unimaginably draconian cuts across the boad, a total collapse of this country is inevitable, and everything will come crashing down, crushing preening liberals and go-along-to-get along Republicans alike.
Yes, folks, it CAN happen here and, in fact, it's BEGUN to happen here. As Mark Steyn points out, we are now borrowing $188 million dollars a day, 24 hours a day, seven days a week. And that's before all the boomers ritire and Obamacare kick in. Funny how the word "unsustainable" never crosses liberals' lips unless they're talking about petroleum products.
We've kicked the can down the road for 75 years - both parties. Now we look up at the horizon and the truth is that there ain't no road left. Our only other option is the one Bernanke is using: the printing press, which is simply default by another name.
Of course Dems think they can conjure up more road out of their moral superiority and pave it into eternity with the gossamer of good intentions, feel-good pabulum and empty platitudes about social justice. For Democrats, the game of "kick the can" never has to end as long as there are producers they can spur harder and harder, the cancer of the nanny state can contintue to metastasize.
Which leaves the GOP looking like the meanies who are going to take the goodies away from all of those benevolent, noble abstractions that liberals love to idealize - you know, the ever-burgeoning victim class.
And our culture is such that we won't stand for the nanny state's teat being pulled away. Look what's happening in Greece; look what happened in Wisconsin.
To say that civil unrest is headed our way is an understatment tantamount to saying the Titanic hit a bit of a rough patch.
Hear that? That's the fat lady singing.
Grzmlyk| 6.24.11 @ 2:30PM
I meant to say that we are borrowing $188 million dollars AN HOUR, 24 hours a day, seven days a week.
Oldefarte| 6.24.11 @ 1:18PM
G.Tracy, All: It is just now being reported that Jim DeMint has demanded that all Republicans stand together and not cave into Democrats' demand for increased taxiation in order to solve the bedget/debt crisis. JIM DEMINT FOR PRESIDENT, please!!!!!!!!!!!
martin j smith| 6.24.11 @ 3:27PM
At the very least Jim Demint for leader of the Gonad crowd. Lets have more testosterone for our current and future leaders.
gary siebel| 6.24.11 @ 3:58PM
Once again the Repubs haven't got a clue. Failure to tax the wealthy will cost them politically, and shutting down the government would be a major disaster for which Repubs would rightly be blamed. Even if Repubs win on the tax breaks for the wealthy, can you say "Pyrhhic victory?"
Truth to Power| 6.24.11 @ 7:36PM
See you next election Gary. Can you say "second straight ass whooping"? Stop fiddling while the country is in crisis. Modern day Greece isn't as much fun as you imagine.
Pat Spooner| 6.24.11 @ 4:49PM
One other thing we all need to remember, the demoncrats want everyone to focus on taxes so we lose sight of what's happening as Obamacare is implemented. We have got to focus on stopping spending and stopping Obamacare implementation!
Purple Lips| 6.24.11 @ 7:32PM
All raising taxes would accomplish is the income theft to future generations. But, even that is problematic. As a society we've either aborted or contracepted future generations. There will be few people to steal from. Watch the bond markets. When the holder of US securities realize they are holding nothing but monopoly money things will get quite interesting.
Nite| 6.24.11 @ 10:14PM
Only idiots would raise taxes in a recession. Obama and his advisors are not the sharpest knives in the drawer. I guess I should say Democrats in general. They have never seen a tax they didn't like.
martin j smith| 6.25.11 @ 8:49AM
Hey Gary, be ready to move to Europe because voters here WILL REJECT SOCIALISM BIG TIME.
Here is how the election will portrayed by our side: Want poverty,weakness in national defense,high inflation ? Vote Socialist. Want the American Dream and strong national defense and opportunity ? vote for us.
NJK| 6.25.11 @ 8:49PM
He won't be reelected. My prayer is that he doesn't even finish this term. He's a criminal who enough people foolishly voted for.
Oldefarte| 6.26.11 @ 1:50PM
Gary S.: I'll agree with you partially in that the American VOTERS did not have a clue as to who/what they were ''''''STUPIDLY''''''' doing on 11/2/08, for as that old philsopher Forrest Gump once declared, STUPID IS AS STUPID DOES! You and YA BOY'S definition of the WEALTHY is ANYONE WITH A JOB AND THAT EARNS INCOME; but your/his wish for raising taxes on same is about as intelligent as does the installation of A SCREEN DOOR ON A SUBMARINE!!!!!!!!!!
steve2558| 6.26.11 @ 4:34PM
This is for speaker Boehner, During Easter Break Remove each and every piece of office furniture in the house and all congressional offices. Let each employee and congresman have to stand for about a month. Tell them that there millions of workers who have to stand on their feet for 8 to 14 hrs every day. So the next time you ask for a tax increase this will burn in your mind that there are real people doing real work so don't be so fast to spend their hard earned money!!!!!!
lisseursGHD | 6.26.11 @ 11:55PM
Bienvenue chez notre ghd france,ghd lisseurs professionnels fourlisseur en ligne où vous offre des stylers ghd variés, fers à lisser de bonne qualité et à prix fous-économisez jusqu'à 54%! Commandez maintenant.
weddingdresses | 6.27.11 @ 4:52AM
He won't be reelected. My prayer is that he doesn't even finish this term. He's a criminal who enough people foolishly voted for.