Tuesday, November 22, 2011

A painful history lesson

Quote of the Day: "They're saying, 'Gee, I'd sure like to write a big check to the federal government, if someone would just stop stopping me.'" - Grover Norquist, on millionaires who want to pay more in taxes.
And as the letter below shows, history backs us up.
You may borrow from or copy this letter, or write one of your own...

Several millionaires lobbied Congress on November 16 to demand that their taxes should be raised.
This is not surprising...
* They are the "winners" in our over-taxed, over-regulated, crony-run system, meaning...
* They have the greatest interest in preserving their advantages and the Big Government status quo...
* And yet they arrogantly boast that they're "patriotic" -- as if people who want less statism and more freedom are NOT patriotic!

But even if some in this group are well-intentioned, they are badly mistaken. History shows that tax hikes actually lead to spending INCREASES. As a Politico op-ed points out... (http://www.politico.com/news/stories/1111/67998.html)
* In 1982 President Reagan agreed to $3 of spending cuts for every $1 of tax hikes. The tax hikes were real. But spending went up, not down.
* In 1990 President George H.W. Bush agreed to a similar $2 cuts for $1 hikes deal. Again, the taxes were imposed, but spending INCREASED.

And, as Alan Reynolds points out... ((http://www.cato.org/pub_display.php?pub_id=13867)
* The budget became balanced in the late 1990's because Congress finally got serious about spending limits and cuts -- several years after the Bush and Clinton tax hikes were imposed.
* Recent austerity measures in Europe led to immediate tax hikes but delayed spending cuts, leading to "slow to negligible economic growth and failure to either reduce the size of government or meet deficit-reduction targets."

Moreover, the tax hikes these millionaires want will raise some $50-60 billion per year (http://tinyurl.com/3okwz42)
* Which is just 1.5% of the federal budget...
* And would cut the DEFICIT by only 3%
* And that's assuming they won't take advantage of legal loopholes

What frustrates me the most is that no one is talking about why the federal budget has grown by $1 TRILLION since 2007. Hasn't the economy gotten WORSE as Congress has spent more?
Raising taxes on millionaires will only rob the voluntary sector of capital with which to grow. BUT EVEN MORE IMPORTANT, it will do NOTHING to stem the tide of out-of-control deficits. The American people will be hurt by economic stagnation and crushing debt.
Put your priorities in order. Ignore these so-called "Patriotic Millionaires." Don't raise taxes on ANYBODY. Instead, CAP THE DEBT by cutting spending! The American people will be much better off when Congress stops squandering the nation's wealth.

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