All Right Idea

Here is a great article from the Patriot Post -

The Foundation

Government & Politics

Tax Increase, Tax Cut ... What's the Difference?

A tip for Congress: "Higher taxes" isn't the answer
Senate Minority Leader Mitch McConnell (R-KY) has introduced the Tax Hike Prevention Act of 2010, which would, true to its name, prevent taxes from increasing for everyone on Jan. 1. The semantics of the bill's name are more important than just an election year ploy, though they are that too. These words go to the fundamental issue at stake -- whose money is it?
In 2001 and 2003, despite controlling Congress and the White House, the only way Republicans could pass the Bush tax cuts and avoid a Democrat filibuster in the Senate was to agree to sunset them beginning this year. That unfortunate reality has created one of the biggest issues of this year's campaign, as taxes will automatically increase unless Congress acts.
Democrats seem to believe tax rates prior to 2001 were the natural order of things. To them, the Bush tax cuts were a 10-year loan from the government and now it's time for the American people to pay up. In other words, it's the government's money. By Democrat illogic, "extending the cuts" will "cost" government $3.7 trillion. Especially egregious to them is extending the current rates for the "rich" -- those earning more than $250,000 per year ($200,000 for singles and $125,000 for couples filing separately). Extending the cut for that bracket accounts for $700 billion of the $3.7 trillion total. And, they ask, don't you ungrateful voters care about deficits?
Furthermore, notes Investor's Business Daily, "Democrats are in effect arguing that the country can 'afford' $3 trillion to keep the middle-class tax cuts in place over the decade, but not $3.7 trillion to keep them all."
Aside from being wrong in principle, their numbers are wrong, too. They assume that increasing taxes would have no negative effect on economic activity. That's demonstrably not so. Democrats also ignore the fact that the Bush tax cuts actually increased tax revenue.
So far, Senate Republicans are united behind McConnell's effort, and a growing number of Senate Democrats are admitting that tax increases during a recession are not a great idea. Sens. Evan Bayh (IN), Kent Conrad (ND), Ben Nelson (NE), Jim Webb (VA) and Joe Lieberman (CT) all have offered support for stopping the tax hikes. Thirty-one House Democrats sent a letter to Speaker Nancy Pelosi (D-CA) and Majority Leader Steny Hoyer (D-MD), pressing them to extend the current rates temporarily for everyone.
The weak link in the GOP's armor appears to be House Minority Leader John Boehner (R-OH). The would-be speaker gave cover to Democrats, saying, "If the only option I have is to vote for those at 250 [$250,000] and below, of course I'm going to do that." Barack Obama, who wants to raise taxes on the "rich," will get mileage out of that one, regardless of the fact that Boehner is leading the charge in the House for a two-year extension of current rates.
At minimum, Congress should make the current rates permanent. A one- or two-year delay would only postpone the decision. (Ideally, of course, we favor a flat or fair tax to replace the current system entirely.) Second, federal spending must be cut. And not just cut in the way Democrats talk about "cutting" spending -- i.e., smaller annual increases in each budget line item. This two-pronged, fiscally responsible approach is necessary to get the economy -- and the nation -- back on track. Republicans have a real opportunity here. Let's hope they don't waste it.

Quote of the Week

It's about time he said something Right! And it is even the All Right Idea!