Commenting on Supercommittee deliberations last month, I asked whether Republicans will choose the real budgetary savings of a sequester or surrender to a tax hike.
Well, it appears that the GOP likes being known as the Stupid Party and is seriously considering a plan to increase the net tax burden on the American people – even though some of us have warned from the beginning that the left would use the Supercommittee process as an opportunity to trick gullible Republicans into a tax increase.
Here’s the relevant section of an editorial by Steve Moore in this morning’s Wall Street Journal.
…raising rates and raising revenues are different. Eliminating loopholes in exchange for making the Bush tax cuts permanent after 2013 is on the table—and by broadening the tax base, this could bring in tens of billions of new revenues each year. Says Mr. Hensarling: “Republicans want more revenues. We want more revenues by growing the economy; we’re not happy with revenues at 14% of GDP, but we don’t want to do it by raising rates.” One positive development on taxes taking shape is a deal that could include limiting tax deductions, perhaps by capping write-offs on charities, state and local taxes, and mortgage interest payments as a percentage of each tax filer’s gross income.
I’m a bit disappointed that Steve thinks restricting deductions is a “positive development.” I’m a big fan of getting rid of all preferences and distortions in the tax code, but that should only happen if all the revenue is used to finance lower tax rates, not to finance big government.
But that’s a secondary issue.
Republicans have complete power to achieve a victory in this battle. All that’s needed is for them to say no to a tax hike. That will lead to a Supercommittee stalemate, which will then lead to automatic budget savings known as sequestration.
Failure to take that option – particularly when the alternative is a tax hike – is breathtakingly misguided.
Especially when the historical evidence is overwhelming that any new tax revenue will be used to make government even bigger. Heck, the cartoon in this post is a disturbingly accurate description of what’s happening.
[…] Once again, Republicans were unable to withstand the demagoguery and they basically gave Obama what he wanted after agreeing to a “supercommittee” that was designed to seduce them into a tax increase. […]
[…] Once again, Republicans were unable to withstand the demagoguery and they basically gave Obama what he wanted after agreeing to a “supercommittee” that was designed to seduce them into a tax increase. […]
[…] There’s a big behind-the-scenes fight inside Republican circles about the military budget. GOP hawks are so concerned about the possibility of a sequester (automatic reductions in projected spending) that some of them are willing to capitulate to a tax hike. […]
Seems to me the money has already been spent, whether foolishly or not, so you owe it! The US is becoming a laughing stock to the rest of the world doing a lot of talking but not much doing.
[…] Here are some lessons from the European crisis that would help us, if only the voters would come to their senses and elect some leaders with the courage to carry them out, instead of continually electing people who fail at basic economics: 1. Higher taxes lead to higher spending, not lower deficits. Miss Morandotti looks at the evidence from Europe and shows that politicians almost always claim that higher taxes will be used to reduce red ink, but the inevitable result is bigger government. This is a lesson that gullible Republicans need to learn – especially since some of them want to acquiesce to a tax hike as part of the “Supercommitee” negotiations. […]
[…] As Americans watch the latest EU fiscal crisis unfold, what lessons can we learn from it? Dan Mitchell brings us a new video from the Center for Freedom and Prosperity with five key takeaways for US policymakers, as part of their Econ 101 video series. The first two are the most applicable in the short term: 1. Higher taxes lead to higher spending, not lower deficits. Miss Morandotti looks at the evidence from Europe and shows that politicians almost always claim that higher taxes will be used to reduce red ink, but the inevitable result is bigger government. This is a lesson that gullible Republicans need to learn – especially since some of them want to acquiesce to a tax hike as part of the “Supercommitee” negotiations. […]
[…] deliberations, I wondered, when they can deliver a guaranteed victory for taxpayers by holding firm and allowing a sequester to occur, which would automatically slow the growth of federal […]
[…] are similar to the thoughts that are going through my mind as I watch Republicans begin the process of capitulating to a tax increase as part of the Supercommittee […]
Republicrats never learn, The demoncraps use the same old tricks and republicrats bite and get stung. The Phrase That has been coined as “The Stupid Party” seems to fit the Republicrats to a Tee. Time To Vote’m Out of office in 2012 and Term Limits. Americans wake up, we’re being sold down the river everyday. McConnell and Bonehead Boehner aren’t Leaders. They Are Just Stooges. Did You Know That Neither one served in The Military, Boehner enlisted and was released 8 weeks later “So-Called Bad Back” Well that has stuck with him Now He’s Spineless. Cheers Semper Fi
[…] 5 Lessons from The European Financial Crisis Thursday November 17th, 2011 • Posted by Stephanie Freedman at 5:04pm PST • 0 Comments An extraordinary article published today in Forbes discusses what we can learn from the European financial crisis: 1. Higher taxes lead to higher spending, not lower deficits. Miss Morandotti looks at the evidence from Europe and shows that politicians almost always claim that higher taxes will be used to reduce red ink, but the inevitable result is bigger government. This is a lesson that gullible Republicans need to learn – especially since some of them want to acquiesce to a tax hike as part of the “Supercommitee” negotiations. […]
[…] are similar to the thoughts that are going through my mind as I watch Republicans begin the process of capitulating to a tax increase as part of the Supercommittee […]
[…] 1. Higher taxes lead to higher spending, not lower deficits. Miss Morandotti looks at the evidence from Europe and shows that politicians almost always claim that higher taxes will be used to reduce red ink, but the inevitable result is bigger government. This is a lesson that gullible Republicans need to learn – especially since some of them want to acquiesce to a tax hike as part of the “Supercommitee” negotiations. […]
[…] 1. Higher taxes lead to higher spending, not lower deficits. Miss Morandotti looks at the evidence from Europe and shows that politicians almost always claim that higher taxes will be used to reduce red ink, but the inevitable result is bigger government. This is a lesson that gullible Republicans need to learn – especially since some of them want to acquiesce to a tax hike as part of the “Supercommitee” negotiations. […]
There have been several major budget events this year, each tramatic dramatic and wind up with pledges to reduce cost of govt.
Why have there been zero cost reductions implemented to date, even a couple low hanging fruit for the Pol’s to show progress. Every second level manager in a private company would have started cutting costs long ago to show that they are on board with the program
My prediction on the Super Committee:
[a] tax rates will rise
[b] spending cuts will NEVER happen
[c] government BLOAT will be even bigger than it is now
[d] prolonged economic weakness, and likely another recession
[e] excess dollar creation, resulting in stagflation
“Especially when the historical evidence is overwhelming that any new tax revenue will be used to make government even bigger.”
I wonder if you could define what you mean by bigger government and provide links to the historical evidence you suggest is “overwhelming.” Here’s one counter-argument: Clinton raised taxes in 1993, yet the federal workforce shrank every year after that until 2000.
I’m sorry! Politics as we know them today will never change….we need to blow it all up and start over!!!!!
Politics today, on both sides of the aisle’s, there are total lies and fabrications of the facts that the unemformed and ignorant believe because of the main stream media’s war on the truth. We are doomed!!!!!!!!!!!!