Tag Archives: taxation

Useful Fantasies

Yesterday, I noted with some alarm the fact-free nature of the GOP debate.

A recent report from the Brookings Institution offers a useful reminder that–inconvenient or not– facts really do matter, particularly when economic policy decisions must be made.

The dog days of August have given way to something much worse. Congress returned to session this week, and the rest of the year promises to be nightmarish. The House and Senate passed budget resolutions earlier this year calling for nearly $5 trillion in spending cuts by 2025. More than two-thirds of those cuts would come from programs that help people with low-and moderate-incomes. Health care spending would be halved. If such cuts are enacted, the president will likely veto them. At best, another partisan budget war will ensue after which the veto is sustained. At worst, the cuts become law.

The putative justification for these cuts is that the nation faces insupportable increases in public debt because of expanding budget deficits. Even if the projections were valid, it would be prudent to enact some tax increases in order to preserve needed public spending. But the projections of explosively growing debt are not valid. They are fantasy.

The remainder of the article–which is well worth reading in its entirety–explains that projections of deficits result from the use of “conventions” (assumptions) that do not reflect current reality, and are evidently not intended to do so.

I do not pretend to understand the utility of these conventions for budgetary purposes, but   to the extent they produce “projections” that do not reflect reality, their use as ammunition in the effort to reduce government to a size that can be “drowned in a bathtub”–to use Grover Norquist’s phrase–is pernicious.

But what if we did face persistent deficits?

The assumption seems to be that the only avenue open to policymakers would be budget cuts. It’s as if we have taken tax increases off the table–despite the fact that America’s tax rates are historically low, America’s wealthiest enjoy a wide range of unconscionable tax loopholes, and America’s most profitable corporations continue to evade taxes by parking their profits offshore.

I don’t understand the dogged determination of the “morality party” to ignore the facts in order to protect the perquisites of the already advantaged at the expense of those who have little or nothing.

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In the Eye of the Beholder

Someone posted a comment to one of my previous blogs to the effect that taxation is theft. This is a not-uncommon complaint of the far right–that government is using its coercive power to steal the fruits of honest labor from its citizens.

I see a different picture. I see whiners who want to steal from their fellow-citizens–people who accept and use the services provided by government with our tax dollars, but who are indignant at the notion that they should pay their fair share for those services. They drive on streets paved with tax dollars, call on police when assaulted, employ workers educated in our public schools, put their garbage out for pickup, are protected by the National Guard and armed forces…No matter how loudly they complain about “socialism,”  I know of none who refuse to accept their Social Security and Medicare benefits.

Talk about your “makers” and “takers”…People who want the benefits of our public infrastructure but get indignant when asked to pay for those benefits sure seem to me to fall into the “takers” category.

The issue confronting thoughtful citizens is not “how do we avoid paying for what we get?” The issue is “how do we insure that government is operating efficiently and fairly, that it is doing those things that are properly its job and not others?” “How do we ensure that we are paying a fair price for services we really want government to provide?”

Of course, addressing those (much more complicated) questions, and monitoring our governing institutions takes effort and a modicum of civic understanding. Fixing those institutions when they are malfunctioning–or not functioning at all, which seems to be the case now–will require real effort. It’s easier to whine.

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