The Soak-the-Rich Catch-22 – Arthur Laffer, The Wall Street Journal
As outlined by Tim Jones in a recent article, and by Arthur Laffer here, one of the pillars of the federal deficit is the decline in GDP that has resulted in far fewer revenues confiscated by the IRS. To generate more revenues, the nation needs GDP growth. Raising taxes, as the Obama administration would like to do, will perhaps in the short run generate a slightly larger revenue stream, but will further hamper the growth of GDP. Lowering taxes or simply extending the Bush tax cuts will likely keep government revenue lower for the short term, but will encourage faster GDP growth in comparison to a higher tax environment. The accelerated GDP growth will generate higher tax revenues in the future even at the lower rates. Laffer explains that during times of tax increase, wealthy individuals have simply found ways to hide more of their income, while during times of tax decrease, wealthy individuals have paid more taxes at the lower rates. It would be apparent to any high-schooler taking his senior year economics class that raising rates doesn’t work, why doesn’t President Obama seem to get that? To generate growth, and to stop wealthy Americans from offshoring their money, lower rates. Make the U.S. a tax haven for individuals and corporations and the revenues and capital investments will start rolling in, creating jobs and plugging the deficit holes that Barack Obama is punching in the federal budget. – Dick Young
Have the Republicans Learned Their Lesson? – TAS Symposium Contributors, The American Spectator
A group of conservative thinkers sounds off on whether or not the GOP has learned its lessons after a terrible record during the Bush administration of supporting rampant nation-building excercises and unfettered spending on everything from expansions to the health-care system (Medicare prescription drug program) and the expansion of power at the wholly unconstitutional Department of Education (NCLB). All these Republican initiatives were passed by many of the same Republican incumbents that are campaigning on conservative principles this year. Here the Chairman of FreedomWorks, Dick Armey lays the blame at the feet of Republicans who lost their way after goods years in 1995-1996. These Republicans used the term “compassionate conservatism,” to give themselves permission to spend the country into a hole so deep it will take years to get out. Fred Barnes tells readers to act boldly and be specific to differentiate themselves from Democrats. That is good advice, and should be taken to heart by the party’s leadership who should be developing broad legislation to repeal bad laws like Obamacare and reduce government at every turn. – Dick Young
Minimize It, Don’t Supersize it – Michael Barone, National Review
Ohio tax payers are furious at their government, as well they should be. They have seen government workers get all the benefits and pensions available, while the private sector has come crashing down around them. Ohioans want to see government programs axed, and the salaries of the remaining government workers trimmed. One third of Ohioans don’t mind if taxes are increased, I say let them pay the higher taxes. Donations are accepted by most states and the federal government. If you’re among those who think that government has all the answers and if only it had more revenue to work its bureaucratic magic that everything would be O.K., by all means donate large sums to the government. If you, like me, believe that government should be trimmed to the smallest scale possible, make sure you show up at the polls in November. – Dick Young
Tax Hike Planned For Lame-Duck Session – Brian Darling, Human Events
It’s not as though you haven’t read it here again and again, but beware a massive orgy of tax raising in the lame-duck session where Democrats will surely use the final days of their majority power to push through painful legislation. – Timothy Jones
The Death of Cap and Tax – Review & Outlook, The Wall Street Journal
Cap and tax is dead as we know it. Hopefully it will not resurface, but again, in a lame-duck session of Congress starting in November anything could happen. The President entered office with six major political and legislative objectives. One: pass a stimulus plan that would ensure public-sector unions saw none of the realities of an economic recession that would be fully borne by the private sector. Two: pass a health-care reform that would not only burnish President Obama’s credentials as the greatest living liberal ever, but one that would also begin crippling the country’s healthcare system so America would eventually be driven to the President’s confessed favorite plan, a single payer public health care system a la the United Soviet Socialist Republic. Three: Card check. Having taken care of public sector unions with a stimulus bill, President Obama wanted to expand both public and private sector unions by allowing union bosses the ability to manipulate union elections through intimidation. Four: Financial Regulation. President Obama, and his cronies in Congress, were eager to cover their tracks on allowing a financial crisis to develop (remember Democrats did control Congress from 2006), and wanted to pass a financial regulation to make themselves seem tough on fraud, etc. Five: Immigration: This cat is still in the bag, and Americans will see it play out over the next few months. Six: Cap and tax, the supposed end to the supposed global warming. The score is now, Obama three (stimulus, healthcare, financial reform), conservatives two (card check and cap and tax) and one up for grabs (immigration). – Timothy Jones
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