This is Not a Tax Cut
By: Craig Chamberlain
Our Orwellian “mainstream” media has taken to calling the Obama tax plan as the Obama tax cuts. Let’s be perfectly clear: no one is cutting taxes. Our tax rates are not being decreased, therefore, it is not a tax cut. It is merely a temporary extension of the current tax rates, and President Obama has to drag his own party kicking and screaming to agree to do even that much. Democrats don’t do tax cuts. They think that merely keeping the current tax structure is an act of unparalleled generosity to us undeserving peasants. After all, as far as they are concerned, it’s not our money. It’s theirs, because everyone is really working for the state, and they need all that money to redistribute the wealth and create their utopia.
Such thinking on taxes is going to continue as long as so many people are uneducated on classical economics. Too many university faculties are crammed full of Keynesian, and Marxist, economists. Such people believe that taxes exist to take from group A and give to group B. When such muddle- headed thinking exists it’s no wonder that there is such confusion over what actually constitutes a tax cut.
Taxes are needed to fund the government. How much government is the debate. We conservatives think that the government should be just big enough to provide essential services, like defense, and funding the bureaucracy. The left thinks that taxes exist to fund a super sized government that gives people every service they could want, and as an added bonus, they get to stick it to businessman and middle class people who don’t fit into their worldview.
Let’s be honest, America cannot survive economically if half of the political class thinks that it is the job of Congress to “spread the wealth around.” It was that line of thinking that got us into a 13 trillion dollar debt. Democrats thrive on class warfare,and they don’t want Americans to believe in economic mobility. If they can convince enough Americans that their situation is hopeless they think that they can get the people to back their plans. That’s why even a tepid tax plan like the one that Congress is considering is enough to make the left explode into spasms of rage.
While an extension of the current tax rates is a good idea, a better idea would be to really cut the tax rates. We need to spur economic growth and this cannot happen with the crippling debt, and, more importantly, it can’t happen with the financial uncertainty that the businesses of America are facing. Will there taxes go up? Will they stay the same for the next two years then go up? These questions make businesses cautious, and reluctant to hire new employees, or make new investments in their businesses.
While tax cuts are not, in of themselves, enough to pull America out of the ocean of red ink(they must be coupled with deep spending cuts in order for them to be really effective) they can be a starting point to getting the economy going and lowering the unemployment rate. The left doesn’t believe this, or doesn’t want to believe this. To them the more the “rich” are taxed(in reality, punished) the more equity and social justice we have and that is worth it, even if one in ten Americans is without employment.
The Democrats don’t want to cut taxes, or even keep the current tax levels where they are, but they do want the credit. To that end they have their minions in the media tell everyone that this is a tax cut, so that in two years President Obama can run for reelection on his tax cut. Conservatives shouldn’t let him get away with it. First of all, they should advocate a real reduction in the tax rates, and they should demand that tax cuts not be coupled with the massive new spending that the Democrats are so intent on having. The Democrats want a 13 month extension of unemployment benefits, when such benefits act as a disincentive for the unemployed from finding work. They are demanding a massive hike in the estate tax from the proposed 35%, and they want to cover a lot more estates than just those worth 5 million dollars. Here’s an idea: how about no estate tax at all? What right does some greedy, degenerate, and lazy Uncle Same have to take anyone’s money rather than leaving it for your family?
Conservatives shouldn’t be fooled by this. It’s good that they got President Obama to agree to maintain the current tax levels, but they should have pressed for more. They forget that in the next Congress, conservatives will have control of the House of Representatives. There is no need to give a lame duck, Democratic, Congress anything. If we want real economic growth, then we need real tax cuts.