[Rushtalk] Headed Toward the 11th Hour Compromise
notmyname at thatswaytoomuch.info
Tue Dec 4 15:54:20 MST 2012
Headed Toward the 11th Hour Compromise
Tuesday, December 04, 2012 <http://tinyurl.com/bm8pqje>by Ronald Regan
As the year draws to an end, America faces yet
another congressionally-manufactured crisis which
will likely end in yet another 11th hour
compromise, resulting in more government growth
touted as "saving" the economy. While cutting
taxes is always a good idea, setting up a ticking
time bomb with a sunset provision, as the Bush
tax cuts did, is terrible policy. Congress should
have just cut taxes. But instead, we have a
crisis that is sure not to go to waste.
The hysteria surrounding the January 1 deadline
for the Budget Control Act's spending cuts and
expiration of the Bush tax cuts seems all too
familiar. Even the language is predictably
hysterical: if government reduces planned
spending increases by even a tiny amount, the
economy will go over a "fiscal cliff." This is nonsense.
This rhetoric is based on the belief that
government spending sustains the economy, when in
fact the opposite is true. Every dollar the
government spends is a dollar taken from
consumers, businessmen, or investors. Reducing
spending can only help the economy by putting
money back in the hands of ordinary Americans.
Politicians who claim to support the free market
and the lower- and middle-class should take this to heart.
The reality is, however, that neither Republicans
nor Democrats are serious about cutting spending.
Even though US military spending is exponentially
larger than any other country and is notorious
for its inefficiency and cost overruns,
Republicans cannot seem to stomach even one penny
of cuts to the Pentagon's budget. This is
unfortunate because this is the easiest, most
obvious place to start getting spending under
control. The military-industrial complex and
unconstitutional overseas military interventions
should be the first place we look for budget cuts.
Similarly, Democrats are digging in their heels
on not cutting any welfare or entitlement
spending and instead propose to fix the deficit
by raising taxes on the rich, even though the US
Government already has a progressive tax code and
the rich already pay more than their fair share.
Furthermore, these higher taxes would fall on
small business owners, investors and
entrepreneurs in other words, the source of economic growth and new jobs!
The truth is that there is no excuse for
government spending being as high as it is, nor
for taxes being as high as they are. Even the God
of the Old Testament only asked for ten percent
as a tithe and offering, and Americans revolted
against the King of England for taxes that
amounted to less than five percent. Yet so many
people today complain about "loopholes" for the
rich that lower their actual tax rate to "only"
13 percent in some instances. Even that is a
criminal amount to pay for a wasteful, abusive, unconstitutional government.
We are indeed headed to a fiscal cliff and have
been long before this latest hysteria cropped up.
But it is not cuts to spending or reduced
government "revenue" that will send us over the
cliff, it is continued government spending that
will. Until the federal government limits itself
to its constitutionally-mandated role, spending
and taxation will remain out of control.
Look for a "bipartisan" compromise in late
December, with Republicans giving in to tax
increases and settling for phony spending cuts
that actually grow government, and Democrats
caving on defense cuts in exchange for tax
increases. This is how the government has always
grown: Both sides will sacrifice their
pro-liberty, small government stances in certain
areas in order to grow the government where they prefer.
Liberty always loses in the 11th hour.
notmyname at thatswaytoomuch.info
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