Tag Archives: deductions

You Deserve a Tax Break and Your Boss Does Too

taxbreak_mini 3Republicans during the Reagan and Bush administrations had a pretty straightforward fiscal policy: increase federal spending dramatically and cut marginal income tax rates modestly, predicting the resulting economic growth would eventually balance the budget. Both administrations increased spending roughly 80-100 percent, depending upon where you draw the start and end lines, given the government’s fiscal year running October 1 – September 30. Predictably, federal debt exploded during both administrations.

This time around, some things are the same, but some are different. The predictable (and predicted) growth of entitlements and the quasi-religious belief military spending must always increase (the military must be “rebuilt!”) has produced what should be a frightening result: federal debt doubled during a Democratic administration under which federal spending increased a mere 28-33 percent, again depending on where you draw the lines.

It’s All Class Warfare

So, the usual Republican modus operandi is not going to fly this time around. Not only have Republicans run on making government smaller, before again blowing up spending once they got in power, but they’ve railed for eight years against Obama’s debt legacy.

They can’t just ignore deficits as they have in the past and expect to win again in future elections, so they’re left with only one choice: “reform” the tax code so it collects the same or more revenue and sell it as a tax cut.

That’s not to say it’s going to work. Federal tax revenue will likely decrease overall under their plan, despite their efforts to raise taxes on some people while cutting them for others. But Republicans can ignore reality as well as Democrats when they need to. If you doubt that, ask any ten Republicans at random if the government got bigger or smaller while Reagan was president.

Republicans are also virtually identical to Democrats in their Marxist view of society.For Republicans, just like Democrats and communists, it is made up of different “classes” of people, competing with each other in a zero-sum game for pieces of a static, finite “pie.” This is explicit in their rhetoric about “tax cuts for the middle class” or the sublimely obtuse “working class” (doesn’t anyone generating an income, large or small, work?)

While it’s true the idea of classes in society predates Marx, it is his vision which dominates the tax code, most strikingly in its assumption there is some fundamental difference between employees of going concerns and owners.

Read the rest at Foundation for Economic Education…

Tom Mullen is the author of Where Do Conservatives and Liberals Come From? And What Ever Happened to Life, Liberty and the Pursuit of Happiness? Part One and A Return to Common Sense: Reawakening Liberty in the Inhabitants of America.