Filed under: Capitalism, Economy, Freedom, Politics, Progressivism, Taxes | Tags: "new revenues?", Government Must Shrink!, How to Help the Economy
Everything the federal government does costs money— whether it’s the motorcade to the golf course at Andrews Air Force Base or the missiles expended in Libya. There are only two ways to get the money, your wallet or to print it. And if they print too much it diminishes the value of what is in your wallet.
Democrats just cannot get their minds around the concept of spending less. In all the discussion about the debt crisis, the steadily increasing unemployment rate, they go back to the same tired themes. If the stimulus didn’t work, it was only because it wasn’t big enough! They need more stimulus, even though the last one was wasted.
Sen. Charles Schumer (D-NY) argued that Republicans are focusing on the deficit at the peril of the economy, and that infrastructure spending and support for clean energy are other stimulus measures that should be considered by Congress. If it hurts to bang your head on the wall, to fix it you should bang it longer and harder?
The American people have their own budgetary problems, and they know how to deal with them. If the spending is bigger than income— they cut back on the spending. If they get in big trouble and have to go to a debt counselor, they are taught how to cut back on the spending. How come these “progressive” nitwits in Congress cannot understand that the principle is the same for the country? Because Fairy Dust trumps common sense. In Fairydustworld, you just change the language a little, and tax increases will be made cooler by changing the phrase to “new revenues.”
Sen. Max Baucus said “new revenues had to be part of a balanced deal to reduce spending and increase the country’s borrowing authority.” New York Times columnist Thomas Friedman wrote that “we need to raise new revenues in order to reinvest in the sources of our strength; education, infrastructure and government-funded research to push out the boundaries of knowledge.
Raising tax rates does not necessarily bring in more money. People have options, and can arrange their affairs so as to pay less taxes. Businesses have been moving from high-tax states to low-tax states at a tremendous rate. Businesses move overseas. People move overseas. Capital goes where it is wanted and stays where it is well treated.
A Mr. Hawkins commented plaintively at the Corner:
Presented with abundant evidence, the American people have rightly judged Obama economic policies failures, and they recognize he intends to continue those policies. Thus they expect the economy to continue to muddle along at best.
True, but it doesn’t go nearly far enough. As a small business owner I’m not only sitting on my hands in terms of expansion and hiring, I’m paring back expenses wherever possible, getting as lean as I can. To say I’ve lost confidence in Obamanomics is like saying the liberal media has lost confidence in Sarah Palin’s ability to govern if elected. True enough, but it goes a little beyond loss of confidence.
Obama & Company scare the crap out of me and I look at them in the same way a three-legged caribou looks at a pack of wolves running up alongside. The assault on folks like me comes on many fronts—business taxes, personal taxes, regulations, inflation, energy prices, Obamacare, etc. I have no way to reasonably outline any business plan(s) for the short or the long term. All of the variables are up in the air. Healthcare costs? Who knows? Energy costs? Got me. Tax rates and levies? Who could say?
It is further exacerbated by the fact that I cannot predict what these jackals might still do to hurt me.With most administrations or congresses,whether you agree with them or not, at least you could usually predict the limits of harm or help they might do you. Not with this Obama crew, and not with the Dems in Congress.
Just a comment on a blog, but I think he speaks for multitudes.
Treasury Secretary Geithner says that the Obama administration believes that taxes on small business must increase so the administration does not have to “shrink the overall size of government programs.” But that’s what the people want, Mr. Geithner. We want to shrink the overall size of government programs.
Democrats cannot conceive of a world where they do not have extra money to do favors for unions and Hispanics and LGBT programs, and poor people and African-Americans, illegal immigrants, anti-war activists, green activists, ethanol producers, wind energy companies, electric car makers, battery makers, window factories, turbine makers, General Electric, teachers unions, schools, solar-cell makers. If they don’t do subsidies and bailouts, regulation and favors who would vote for them?
How come just doing what’s right for the country, encouraging the free market, freeing business from over-regulation is so frightening? It always works.