Posted tagged ‘expiration of Bush Tax Cuts’

Tax Shortfalls – Tax Shortsightedness – Right Wrong – Krugman

August 9, 2010

In a wonderful opinion piece this morning, Paul Krugman writes of “American Going Dark” – state and local governments forced into budget cuts that are destroying all those things government typically provides –street lights, roads, schools.  Although the Federal Government could help the states out, Krugman says it is strapped by deficit reducers and, worse, tax deniers – those determined to extend the Bush tax cuts for the top two percent of earners.  Krugman believes that  this is the natural result of a society that has decided (really since Reagan) that all government spending is bad; that it all just ends up in the pockets of “welfare queens.”  (A society that ignores, for example, the government spending that goes into the pockets of Halliburton Kings.)

Actually, that last parenthetical probably doesn’t support my point (or my oversimplification of Krugman’s point), which is that government spending is necessary for a decent community and individual life, and that, in addition, by imposing taxes that allow the hiring of more service providers, government fuels the economy in ways that allowing more money to stay in the hands of millionaires does not.

Palin and others on the right insist that the end of the Bush tax cuts will hurt the “job creators” and further ruin the economic situation.

Once again you want to ask the question “where have these guys (on the right) been for the last ten years?”  If the Bush tax cuts were so great for the economy, why was it in such a mess at the end of his tenure?

More importantly, the end of the Bush tax cuts will be the end of a rather special (and not distinguished for anything good) period of the U.S. economy.   Allowing the cuts to expire is not a forced march into the withering desert of socialism, but a return to the tax regime in place during Clinton’s era–a time, if memory serves, of prosperity, peace, relative deficit reduction, and better employment.

Peace is an operative word in the last sentence; as Bush failed to understand, an ongoing war is not a justification for lowering taxes.   The lowering of taxes in a time of two wars not only weakened us economically, it contributed to a certain blitheness about the wars, a notion that such wars could be maintained with no cost borne by the average American, but only by those GIs, reservists, and National Guardsmen (not usually among the group that profited from the tax cuts) who served tour after tour.

I don’t particularly like taxes.  (I also don’t particularly like electric bills or rent.  If we’re talking about lowering my financial burdens, I would put in a word for lowering the costs of fruits and vegetables, fine tea, and vampire novels.)

But I do like having subways that run on time, streets that are not infested with rats; an educated population; a national park system; culture which does not rely solely on high ticket prices; enforcement of clean food, water, air standards, and other environmental values; a medical system in which a health care provider will actually spend time with you; money that has a stable value; and protection, both at home and abroad.

Those on the “right”, and I hesitate to even give them that characterization, are simply wrong about all this.

More Pants on Fire – Palin on Taxes; Ahmadinejad on 9/11

August 7, 2010

Pants On Fire

I had been planning to write about Sarah Palin today –  I dreamt last night of her scoffing at Copernicus with an aw-shucks smile and a “now, don’t go all helio-what’s-it on me.”

Only that didn’t seem truly apt.   Copernicus’s theory of a sun-centered universe, as set forth in De revolutionibus orbium coelestium, was, in fact, revolutionary, hard for many to accept.   (See e.g. what happened to Galileo.)

A better illustration of what I’m trying to get at would be Palin saying that the sky isn’t blue.  (But even that’s not a great example – some could say that color is just an illusion of refracted light.)

What I’m looking for a flat-out lie.  How about focusing on Palin’s statements that Democrats are now pushing the largest tax increase in history and that it will have an effect on every American who pays income taxes.

The Pulitzer Prize winning Politifact characterized this as a “pants on fire” statement.  Poltifact details the various inaccuracies,  but one of the basic points is that the Bush tax cuts expire on their own in 2010; the Democrats are not terminating them.  If no one does anything – something this Congress is quite good at – the cuts will simply end.

More importantly, if Congress were to follow Obama’s and the Democrat’s plan – Palin says they don’t have one but that’s another flat-out lie – only the Bush tax cuts for high earners would be allowed to expire.  This would result in a tax increase smaller than one passed by (hero of heroes) Ronald Reagan.  Even if all the Bush tax cuts expire, and not simply those on high earners, the increase would not be the greatest in American History.  (It’s also worth noting that the expiration of the cuts returns the country to the pre-Bush tax regime; it does not push it to totally new tax altitudes.)

My concern here, however, is not  taxes, but political dialogue; the popularity of the flat-out lie.  One would think that speaking in front of a camera would discourage lying, but the cameras just spread the lie farther, faster, even endowing it with a kind of authority, something Sarah well (shucks) knows.

So, I was going to write about Palin.  And then I opened up the online Times to see Ahmadinejad denying the death toll of 9/11.  “They announced that 3,000 people were killed in this incident, but there were no reports that reveal their names. Maybe you saw that, but I did not,” he blithely announced.  (Where was he?)

I’m not comparing the substance of Ahmadinejad and Palin, or their general truthfulness.   I hesitate to even put them in the same post because I don’t wish to imply that their aims or world view are in anyway comparable.   I am struck though by the similarity of political tactic in this instance–the technique of just saying something that you think will resonate with supporters, even though you must know it’s untrue;  an audacity of cynicism rather than hope.