[Rushtalk] Headed Toward the 11th Hour Compromise

Paf Dvorak 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.

Paf Dvorak

notmyname at thatswaytoomuch.info 
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