Raise taxes to cut government?
So much for the starve-the-beast theory whereby cutting taxes leads to smaller government. Our two leading tax-cutting presidents, Ronald Reagan and George W. Bush, advocated that theory, then expanded government with borrowed money. Clever fellows.
Another theory based on the “fiscal illusion” effect holds that raising taxes is a more effective way to contain government than cutting them.
I discuss that thinking in my new column:
RAISE TAXES TO CUT GOVERNMENT?
Tags: Democrats, economics, Republicans, taxes
July 28th, 2010 at 2:48 pm
From your column: “Are Democrats equally to blame? No. Deficit spending is warranted during an economic crisis. (By the way, their new health-care initiative was fully paid for.)”
You must be smarter than that. Yes, the health-care bill was scored as deficit-neutral by the CBO, but even a cursory look at the process reveals that is nothing more than smoke and mirrors designed to game the score. I can name at least three problems off the top of my head: ten years of taxes for seven years of benefits, huge deficits beyond the ten-year scoring period, and cuts to Medicare that experience shows will never happen.
The Director of the CBO and the Director of Medicare have both come out saying that the bill will greatly increase the deficit. I can’t believe that you have missed this.