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Why the GOP should reject tax hikes…

July 8, 2011

Why are Republicans demanding a debt deal that has big spending cuts but no tax increases? (Besides, of course, the fact that spending is the problem and the last thing this weak economy needs is a tax hike?) Maybe it’s because the last time they agree to one of these “$2 in spending cuts for every $1 in tax hikes” agreements, they got snookered.

Yep. The chart is quite telling as well….

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2 Comments
  1. Michael Eaton permalink
    July 11, 2011 10:00 am

    Question: is the problem you are posing about the economy or deficit? YThey are two separate issues. Deficits do not determine the health of an economy, and neither does an economy determine the size of a deficit. The problem here is that the Republicans do not seem to understand this.

    Deficit reduction: Tax increases (i.e. revenue enhancers) HAVE to be put in place alongside spending cuts or the deficit reduction is not serious. Period. There aren’t enough cuts to make the necessary impact on the deficits. So if they are actually SERIOUS about deficit reduction being vital to survival, it is simple: raise taxes and cut spending and apply it to the deficit.

    Economic bolster: if we want to bolster the economy, then straight cuts would be a stupid. The reality is that just making spending cuts will tank the economy further, but cutting federal, state and local jobs, putting tens of thousands if not millions on unemployment. What bears this out? The cuts local governments are making as a result of fewer federal dollars being available to augment state dollars. It is a self-generated economic drain.

    You want graphs? I’ll give you graphs, and it shows that the pain being felt in this economy is not the “long-suffering, over-taxed” rich… Despite your violin-string montage to them:

    http://motherjones.com/politics/2011/02/income-inequality-in-america-chart-graph

  2. July 12, 2011 10:35 am

    “neither does an economy determine the size of a deficit.”

    WHAT? In what world are you living in? When the economy is putting out less, people are making less (or are making NOTHING if they’re unemployed), so the tax revenue to the government is lowering, therefore if the SPENDING DOES NOT CHANGE, you start to run deficits. Granted, you can put a gun to the heads of the American people, strangle the Goose Who Lays the Golden Egg in order to get another golden orb or two, to increase “REVENUE”, but when you are an entity that doesn’t create wealth, ie; The Government, you’re taking water from end of the pond, walking around to the other side, and pooring it back in.

    But to argue that the economy doesn’t affect the deficit is delusional at best… and we all know that we won’t default. It’s impossible, as the law requires us to pay our debts and the executive has no choice but to do so. The problem that the left sees is that all of their wonderful “auto-pilot” entitlement programs will come up short…. that is what is causing this gnashing of teeth without continuing to mortgage our children’s future…

    No. We’ll talk about tax increases… (what, I’m sorry, we’re calling it Increased Revenue Programs now I believe in newspeak, to start in 2013 after the election cycle is over)… when the cuts are already in place. Once our spending has been reduced, and we can live inside of our means, we’ll revisit our broken tax system and see if we can work out a truly fair way to pay for our legitimate governmental programs..

    And your chart. Class war-fare, built upon envy dressed up in the tattered rags of “fairness”, at its best. Lovely, Comrade. Just lovely. Long live the dictatorship of the proletariat!

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