By Alden L. Benton
“Read my lips: No new taxes.”
~George H. W. Bush at the 1988 Republican Party National Convention
President Bush’s statement also speaks to the core principles of the TEA (Taxed Enough Already) Party and fiscal conservatives.
According to a story in today’s Washington Post, the Democrats are proposing a 10-year, $3 trillion debt deal.
Their plan sounds good until you look at it carefully.
According to the Washington Post, the Democratic proposal has three basic components: cut services, change the method of calculating inflation (see my post Hidden Tax Proposed in Secret), and increasing taxes. The article states:
“Senate Democrats are urging the debt-reduction super committee to pursue a far-reaching agreement to slice $3 trillion from the federal budget over the next decade through significant cuts to federal health programs, including Medicare, and as much as $1.3 trillion in new taxes.”
As I have said before, the Democratic Party is simply stuck on stupid.
The worst thing a government can do during an economic slump is to increase taxes. Increasing taxes reduces savings which reduces capital available for investment. Without investment, entrepreneurs cannot start businesses and business already operating cannot expand. If businesses are not created or growing, there will be no new jobs and the number of existing jobs will shrink.
Creating a climate that encourages saving and investment is the only way that any government can actually “create” jobs.
The population of the United States is aging. We have entered an era where the 60-80 million people of the “baby boom” (people born between 1946 and 1966), are beginning to retire and get Medicare.
Without serious structural reform, the big entitlement programs like Medicare, Medicaid, and Social Security will fail. Cutting benefits will only delay the ultimate collapse while increasing the suffering of millions of retirees.
In the end, we may indeed need to raise taxes. However, these schemes are not the answer as they are just the same old Democratic horse hockey dressed up in new clothes.
The Democrats are quite fond of manipulating the facts. They wail that those mean old conservatives want to throw granny under the bus. Well, as this proposal exposes, it is the Democrats who want to throw granny, and the rest of us, under the big black government bus.
We do not have a revenue problem. We have an out of control spending problem and, because of that spending, we have compromised our own security with massive foreign borrowing.
We need to fix the economy. We need to fix the tax code. We need to shrink the government. Then we can fix the debt and entitlement mess.
There are plenty of plans on the table, all better than this Democratic farce. Congressman Paul Ryan, Congressman Ron Paul, Herman Cain, Rick Perry, and Michelle Bachman have all presented plans for prosperity and debt freedom.
It is time we stop listening to the balderdash the Democrats are spewing and consider the merits of the plans put forth by the conservatives, plans that will only throw the Democrats under the bus.
©2011 Alden L Benton/Independence Creek Enterprises.
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