Sock it to ’em: the left dreams of more taxes and more government

The left’s collective veneration of the state and readiness to surrender self- reliance to its generosity are becoming ever more evident as the presidential race accelerates.

After exhaustive research, the New York Times has concluded that if the federal government raised taxes on the wealthy it could generate a lot of money. You don’t say.

tax-cartoon

The Times also figured out that the potential amount of revenue the government could raise from the wealthy would depend on how much the government raised their taxes. That’s groundbreaking.

Not only that, The Times said, but the government could raise one hell of a lot of revenue from high earners “…while still allowing them to take home a majority of their income,” How very thoughtful.

The Times effused over the things the government could do with a ton of additional tax revenue, like eliminating undergraduate tuition at all the country’s four-year public colleges and universities, as Senator Bernie Sanders has proposed. The potential next step — student loan forgiveness?

With the base of the Democratic Party moving swiftly to the left, you can expect more of these “we can do it because the wealthy will pay for it” proposals.

In the end, the Times took 2085 words to conclude that the more you tax rich people, the more taxes the government will collect (assuming the well-off don’t figure out how to avoid paying the taxes) and the more the government can spend on all sorts of stuff.

What the Times didn’t do is address the question of whether it would be a good thing for the government to reap enormous revenue increases and vastly expand its penetration into our daily lives.

Do we really want a massive expansion of government that would be a successor to the New Deal and the Great Society?

When you invite the government to pay for more things, the government becomes your partner, or, more likely, your boss. Is that what Americans want?

When government gives you things, they always come with new federal rules and regulations accompanied by known and unknown costs. Is that the American dream?

The Times also didn’t address the growing fiscal problems we are already facing:

  • Federal spending still exceeds revenue by over 400 billion dollars a year
  • deficits are expected to resume growing
  • even with declines in discretionary spending imposed by sequestration, entitlements are expected to grow in the future.

“You wouldn’t know that we have an unsustainable fiscal path from the debate we’re having right now,” Rudy Penner, a former director of the Congressional Budget Office, told the Wall Street Journal.

A message to the left and the NY Times. Be careful what you wish for.

 

(P.S. – Yes, I know, you also have conservatives proclaiming how they want to cut taxes when we can’t even pay our bills now, but that’s another story)

The real war is on our children

Democrats are again pulling out from their rhetorical basement accusations that Republicans are waging a “war on women”. Meanwhile, they’re ignoring another war that’s real, the “war on our children” that government spending addicts are prosecuting.

Our children are going to pay a heavy price for the fiscal insanity that has already led to national debt in excess of $17 billion.

Obama-National-DebtThe increase in our national debt over the past 25 years. years has been mind-boggling. In 1990, it was $3.2 billion, in 2000 $5.7 billion. By 2010 it was $13.6 billion. Now it has leaped to $17.5 billion.

But Democrats, in the spirit of “see no evil”, want to keep the issue under wraps and focus on other things. During a February 2014 House Financial Services Committee hearing, Rep. Maxine Waters (D-CA) and Rep. Keith Ellison (D-MN) even complained about two real-time running national debt clock displays in the hearing room. Ellison said it was just intended to send an ideological message.

Obama says his FY2015 budget proposal is an “opportunity agenda”. Yes, an opportunity for $564 billion more debt, an opportunity to increase total national debt to nearly $25 trillion over the next 10 years and an opportunity to pander to Americans who want it all without paying for it.

As Alabama Sen. Jeff Sessions, the top Republican on the Senate Budget Committee, said, Obama’s budget is a declaration that “deficits don’t matter, debt doesn’t matter, and that reality itself doesn’t matter.”

Some Democrats are arguing that annual deficits are dropping, so we can all back off worrying about the problem.

But the most recent Congressional Budget Office (CBO) budget forecast projects that after a few years of lower deficits they’ll climb again for an indefinite period. In addition, the national debt will increase annually by much more than the amount of the deficit because a considerable amount of federal borrowing is not counted in the budget.

As a result, the CBO projects $7.9 trillion will be added to the nation’s cumulative public debt over the next decade.

That’s because revenue will keep up with economic growth, but spending will grow even more. “Spending is boosted by the aging of the population, the expansion of federal subsidies for health insurance, rising health care costs per beneficiary, and mounting interest costs on federal debt,” the CBO said.

According to the CBO, interest payments will soon become the third largest item in the federal budget, after Social Security and Medicare. Right now, interest on the debt costs $233 billion. CBO projects that interest costs will reach $880 billion by 2024. As interest costs grow, they could crowd out investment in other priorities, including education, research and development, and other programs that could help our economy grow.

Large and growing federal debt that restrains economic growth will give policymakers less flexibility to respond to unexpected challenges, and eventually increase the risk of a fiscal crisis.

A Peter G. Peterson Foundation survey released on March 25, 2014 concluded that 67 percent of people say their concern about the national debt has increased over the past few years and 79 percent say that addressing the national debt should be among the President and Congress’ top 3 priorities.

And yet, Democrats continue to resist deficit-lowering efforts.

Deficit reduction surged as a policy priority during Obama’s first term: Between 2009 and 2013,  the share citing the deficit as a top priority rose 19 points, according to a January 2014 report from the Pew Research Center for the People & the Press. In the most recent 2014 survey, majorities of Republicans (80%) and independents (66%) continued to say reducing the budget deficit should be a top priority for the president and Congress, but just 49% of Democrats viewed it as a top priority, the lowest percentage since Obama took office. Going back 20 years, the gap between Republicans and Democrats on the issue has never been as large as it is today, Pew said.

Not exactly a hopeful sign for the emergence of bipartisan cooperation on the issue.