By Alden L. Benton
According to a Reuters article (Democrats Push Tax Hikes First in Deficit Talks), the Democrats on the Congressional “super committee” who are “negotiating” deficit reduction details are demanding tax hikes first.
The Democrats are stuck on stupid.
The reason we have a deficit and an ever-increasing national debt is simple: the government spends more than it takes. The obvious solution is to spend less. However, the Democrats want to fiddle while the country burns.
The foundation of Democratic Party thought is socialism.
In a more American terminology, the Democratic Party’s creed is based on an ever-expanding, and increasingly powerful, government which derives its power not from the consent of the governed, but through continual class and racial warfare. This power is supported by a confiscatory tax scheme that punishes success and rewards subservient dependency. The result is loss of liberty and an unsustainable welfare state.
According to usgovernmentrevenue.com, since 1950, income tax revenues have averaged 12.16 per cent of gross domestic product (GDP) and federal deficits have averaged 2.25 per cent of GDP. There have been 10 budget surpluses since 1950, including four years in a row from 1998 to 2001.
The point here is that in my lifetime, the government has spent more that it took 84 per cent of the time.
Revenue is not the problem. Spending is the problem.
We cannot, as Vice President Biden infamously suggested, spend our way out of recession. This should be painfully clear as the near trillion dollar stimulus of 2009 failed to do anything but extend the reach of government into our daily lives and push us closer to the precipice of insolvency.
Yet, the Democrats continue to do the same things over, and over again, expecting different results.
This is the definition of insanity.
The Democratic Party and the president cannot rewrite the laws of economics. History shows that where economies are the most free, all of society benefits and government revenue actually increases. Conversely, when economies are restrained, everyone suffers and, even with tax hikes, government revenue decreases.
This is not the time to increase taxes. Our economy is struggling under high taxes, fiscal uncertainty, and excessive regulation.
Instead of talking about increasing taxes, the Democrats on the super committee should concentrate on reducing spending, freeing the economy, and, yes, reducing taxes.
We will all benefit, including the 47 per cent of citizens who do not pay taxes. Perhaps it is time that they pay their fair share as well.
©2011 Alden L. Benton/Independence Creek Enterprises