Tuesday, April 12, 2011

Low Tax Rates Create A Spending Problem

Thirty years of tax cutting has snowballed into disaster. Combined with two wars that have lasted longer than World War II, military deployments in more than 150 nations, corporate welfare and the cost of the Great Recession, voodoo economics has left America with a substantial deficit and debt. Tax cuts have not delivered on their promise of job creation or widespread prosperity. Quite the opposite.

But the American mentality now is that taxes can only be cut. In fact, at every level of government taxes are too low. The United States has the lowest taxes among advanced nations, and in this survey only Mexico and Chile are lower, nations that are hardly analogous to America or role models.

Contrary to the widespread propaganda, the deficit and debt are not an immediate emergency. Yet they are serious enough to attract attention, and become useful ammo for demagogues on the right who peddle the notion that we face disaster because of spending on poor gay union people of color seeking foreign-aid abortion earmarks.

That the solemn obligations of Social Security and Medicare are the root cause.

Our supposedly liberal/socialist/Islamofascist president has bought into the right-wing narrative: America has a spending problem, not a revenue problem. In reality, low tax rates are most to blame. They have finally been reduced, at every level of government, to crisis-inducing levels.

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Rogue Columnist (via azspot)

Spending is only a problem for Republicans when a Democrat is in office. And their base is too foolish to even notice.

Posted via email from liberalsarecool.com

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