Fund Your Utopia Without Me.™

29 January 2013

There's No Such Thing As A "Permanent" Tax Cut

"Dazzled by Obama’s Ozymandias-scale sneer most liberals failed to notice that Boehner quietly made 99% of the Bush tax cuts permanent."

-  Ralph Benko, Forbes, 28 January 2013

No tax rates are permanent. If ANYONE believes that Democrats (and even Republicans, more than likely) aren’t going to raise taxes on the middle class in the future, they need their heads examined.

Further, if "ANYONE" doubts me, then look to Europe.

If Europe is prologue...

Despite the "Austerity = Tea Party/Austrian Economics!  E113veNty!!!111!!!" hysteria by idiots and propagandists like Paul Krugman, Ezra Klein, et al, European Austerity has NOTHING in common with that espoused by limited government/low taxation/spending cuts Americans.  European leaders - of all stripes - knew that it was/is far easier to raise taxes than reform unsustainable entitlement programmes and cut spending.

Labour bankrupted the UK during its 13 year reign.  Did the coalition led by "Conservative" [True, "conservative" in Europe does not mean the same thing as "conservative" in the US save for a few like Daniel Hannan, Nigel Farage (UKIP, but more conservative than Cameron), etc)] cut taxes and spending?  No, it has actually increased spending to a level higher than Blair-Brown, raised taxes, and postponed meaningful spending cuts...indefinitely.  Government spending as a percentage of GDP in 2007 was 40.3%.  It was 45.3% in 2012.

[In some fairness, Osborne has reduced the top marginal rate from 50pc to 45pc after the "sock it to the rich" tax resulted in a loss of revenues to the Treasury of £509 million in January 2012 compared to the same month in 2011.]

Did "Conservative" Sarko cut spending and taxes after the recession?  No.  In fact, in 2012, he proposed even more tax increases and pledged to "sock it to the rich" even more than Hollande would, if reelected.  And, Hollande has just pumped Sarko's economic policies/proposals with steroids.

France's government spending as a percentage of GDP:  52.6% in 2007; 55.8% in 2012.

Berlusconi increased taxes and Italy has increased spending.  47.6% as a percentage of GDP in 2007 and 50.1% in 2012.

Even though Merkel did cut some spending in areas, she, too, increased taxes and government spending has continued to grow in others.  Government spending as a percentage of GDP was 45.1% in 2012 and 43.5% in 2007.

Even Spain's spending increased.  2007: 39.2%.  2012: 42.0%.

Over the last decade, EU member states have collectively increased government spending by 62%.  In 2012, average government spending by EU nations stood at approximately 49.2% of GDP — v. 44.8% in 2000.

On its own website, the EU itself ridicules the notion of government austerity as a "myth."

"National budgets are NOT decreasing their spending, they are increasing it," the EU says, noting that in 2011, 23 of the 27 nations in the EU increased spending. This year (2012), 24 of 27 will do so."

American leaders will raise taxes before they cut spending because it is just sooooo must easier to demagogue and say, "How can you be against 'the children' and 'the elderly'?  Why does someone earning $75,000 a year NEED so much money?  It's one's PATRIOTIC DUTY, as part of the middle class, to pay higher taxes in order to give others a 'fair shot and fair shake'!  And, you are just mean, selfish, greedy, racist, hateful, and treasonous, if you believe otherwise and refuse to do your 'fair share'"

Politicians ALWAYS take the path of least resistance.

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