In some ways this is just another gaffe of the day – VOODOO ECONOMICS: GOP Rep Claims Tax Increases Would Hasten Debt Crisis. Yet it is also symptomatic of larger issues involving logic and knowledge.
Take Rep. Tim Scott (R-SC) — a high profile freshman, popular with the tea party. After a GOP caucus meeting Friday morning, he explained to a group of reporters that even if tax increases could pass the House, they would hasten a debt crisis.
“Tax increases only makes the situation worse, and at the end of the day it has the exact opposite effect that we would think that it would have,” Scott claimed. “Fewer revenue dollars.”
The exact opposite is true — tax increases have been a successful part of every deficit reduction plan, and President Bush’s giant tax cuts in 2001 and 2003 dramatically increased deficits. So I asked Scott how tax increases exacerbate the debt situation.
“At the end of the day the fact of the matter is we’ve spent more money than we’ve been taking in,” he said. “We do not have a taxing problem. We don’t have a revenue problem. We actually have a spending problem. So if you increase taxes in order to spend more money, you’ve not solved the problem, you’ve only dug a deeper hole.”
This actually contradicts his original supply-side explanation. If tax increases reduce revenue, then tax increases can’t be used to finance more government spending. The upshot, though, is that the GOP is still locked into opposition to tax increases, whatever the explanation.
Think of the new possibilities, the new ways of looking at the world, in essence the new reality if tax increases reduce revenue. Carrying more weight around increases your chances of floating off into space. Eating more fat and calories will make you thinner. Throwing a baseball harder makes it go slower. Putting the propulsion rockets on backwards will make space craft reach orbit by a shorter route. Drinking less water will hydrate you. Dumping toxins into lakes and rivers makes them cleaner. Shooting at people is the only way to make sure they don’t get shot. Flushing your toilet is just going to make the bathroom stink. Being polite is actually rude. Being obnoxious is the new charming.
There is part of Rep. Tim Scott’s (R-SC) crazy quilt of words that one could put together in a way that makes sense: if one has more revenue than certainly one could use it to spend rather than reduce one’s debts. Logic can be difficult, the conservatism movement frequently providing examples of their ongoing struggles. Evidence should not be too hard. The government, specifically the judiciary is depending on citizens who have a grasp of evidence based arguments in order to have a competent and fair legal system. Spending has been a little high the last couple of years because of a little something called the great recession. The economy lost about $17 trillion dollars in assets. The govmint had to spend a little money to keep the nation from having a complete economic collapse ( there was TARP and the auto maker bailouts started under the Bush administration and the Recovery Act started by the Obama administration. TARP and the auto bailouts have largely been repaid. Still the net loss to the nations will be in the tens of billions. Not the end of the world, but far from chump change). Federal revenues are expected to drop to 14.8 percent of GDP this year, the lowest percentage of revenues to GDP since 1950 – which is also the last time taxes were this low. Historic deficits that started during the Bush administration – a huge tax cut, two unpaid for wars, unpaid for Medicare part D legislation and a general failure to fit revenue with spending has left a legacy of that debt, the loss of wealth due to the recession plus the interests on the debt – imagine someone stealing your identity and going on a wild spending spree, leaving you with the bills plus interests on the debt – our current problem. There is no way short of ending Medicare or all defense spending or both in which the nation can get to a balanced budget. If you add up the people who do not want Medicare and defense spending cut you get quite a majority. If people like Rep. Tim Scott are sincere about getting a balanced budget they will need to raise revenue. We could start auctioning off things like the Statue of Liberty or the Grand Canyon – though some people might consider that extreme. Or we could have the same tax rates we had during the Clinton administration. Scott’s ideological brethren have made a huge impact on my world view and what I thought was a better than average knowledge of economic and socio-political schools of thought. It turns out that anyone who raises taxes is a Marxist determined to redistribute most of the income of the smartest hardest working Americans and give it away to lazy ne’erdowells. Based on that I have ranked Ronald Reagan the biggest American Marxist of the last 35 years with an average tax rate of 11.06 percent. President Obama needs to go back to Comrade School. He is a complete failure at being a Marxist with an insulting average tax rate of 4.68 percent. Barack is never going to make it into the Redistribution of Income To The Lazy Hall of Fame at that rate. Considering that most of the wealth generated in America is still redistributed upward to those who do the least work, Barack may make it into the Welfare for the Wealthy Hall of Fame..
From the WordPress community – Eichler Homes – Orange California. The blogger/photographers said he wished he knew one of the occupants so he could take a few snaps of the interior. To me it seems if you have enough nerve to get up in their yards to get a few pictures you could just ring the door bell and ask if you could take a few photographs of the inside. Just say’n. There are some interior shots here. Joseph Eichler (1900–1974) was a 20th century post-war U.S. American real estate developer known for developing distinctive residential subdivisions of Mid-Century modern style. Some observers claim the house used for the FaceBook home (Palo Alto) in The Social Network is an Eichler.