Shifting the balance?

In a provocative post titled "Are you a fiscal conservative?" the Inquirer's financial columnist Andrew Cassel asks some good questions:

. . . [S]upply-siders aren't totally wrong - there is some growth effect from tax cuts. But it's not a large enough effect to make tax-cutting a painless exercise, as Congress and the Bush administration would like us to believe.

Moreover, most credible projections still show the deficit exploding after 2008, when the baby boomers start claiming Medicare and Social Security. No tax cut imaginable would make that problem go away.

That's why a lot of economists describe Bush's tax cuts as not really cuts at all, but rather tax shifts. Today's deficits add to a mountain of debt that our kids and grandkids will have to pay off, one way or another.

Which brings us back to my original question. If you call yourself a fiscal conservative, what does that mean?

Does it mean you believe in sound budgets, paying your bills, and living within your means? In political terms, does it mean you think government's size should be limited by our ability and/or willingness to pay for it?

Or does it simply mean you just personally want to pay less taxes, end of story and damn the consequences?

If you call yourself a fiscal conservative, I think you have to decide.

Yes, government's size should be limited by our ability and/or willingness to pay for it, which I why I oppose runaway deficit spending as well as increasing taxes. I oppose pork, just as I oppose paying for pork.

But in political terms, I think the Republican refusal to raise taxes is grounded in political pragmatism rather than sincere political ideology. Surely they're smart enough to know that (as my father used to say) "if you're going to dance you have to pay the fiddler."

At least, someone will.

I think that Republicans may be deliberately shifting that someone. There's been a lot of speculation about whether the Republicans might be engineering their own defeat this November.

Granted, if there's a deliberate strategy of defeat, no one will admit to it. But let us suppose that the Republicans know that sooner or later, taxes must be raised. Wouldn't it make sense to shift the responsibility for unpopular but inevitable tax hikes to a Democrat-controlled Congress?

The remaining Republicans could valiantly fight the tax hikes, and even if lame-duck Bush were faced with "no choice" but to go along, why, it would be the Democrats actually who did it.

Meanwhile the Republicans could continue to oppose tax cuts.

Americans love consistency!

posted by Eric on 05.17.06 at 12:47 PM





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Comments

I support tax cuts. I also support benefit cuts. If the government hurts after the tax cuts, that is a good thing. If social security can not be paid after the tax cuts, that is a good thing. If medicare/medicaid can not be paid after the tax cuts, that is a good thing.

Clear?

Don Meaker   ·  May 17, 2006 05:37 PM

We need to raise taxes in order to balance our federal budget, correct? Well, what if you can still balance the budget after lowering tax rates? This appears to be what is happening; however, nobody is talking about it but it seens that the budget will be balanced by the summer or fall of 2008.

Social Security is so big that it will never be fixed by simply raisng taxes without crippling the economy. It can only be solved by means-testing for benefits or privatization.

Jimmy the Dhimmi   ·  May 17, 2006 07:51 PM


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