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President Obama is intimating that the GOP’s opposition to “increasing revenue” is the sole obstacle to achieving a deficit reduction plan. We should call his bluff and put forth proposals to increase revenue. Then, there will be no excuses for opposing a Balanced Budget Amendment.
Obama has complained that we are overlooking the “spending through the tax code.” He is correct. There are a lot of handouts ensconced in the tax code; it’s just a shame that he is indifferent to them. In fact, he has increased their size and scope by leaps and bounds through his stimulus bill, denying the treasury much-needed revenue.
The Marxists have always had a way with words. In their dyslexic world view, they refer to tax cuts as handouts and handouts as tax cuts. Concurrently, they view tax hikes as spending cuts and spending cuts (real revenue increases) as tax hikes. As such, it is no surprise that Obama seeks to punitively eliminate universal tax deductions that are broadly available for real taxpayers, like the charitable tax deduction and the depreciation tax credit for oil companies, while blithely ignoring the selective handouts to those who don’t pay taxes, such as the (un)earned income credit, ethanol tax credit, and the green industry life support.
Those of us who don’t live on Animal Farm can easily discern ways to grow revenue without raising real taxes. This involves eliminating special interest “tax extenders” for selected individuals, industries, or social engineering endeavors – and those “credits” granted to people who have no tax debit in the first place. We should leave those deductions and credits that are 1) broadly available and 2) do not completely eliminate someone’s tax liability.
Another forgotten aspect of the revenue argument is that there are other ways of raising revenue without proposing new taxes, or even eliminating of tax credits:
Here is one more way to grow revenue. Since we all agree that this is a long-term problem, let’s stop focusing on short-term increases in revenue. We all know that the only way to increase revenue in the long-run is to grow the economy. We already tried Obama’s inverse Laffer Curve of spending money to grow the economy, and by extension, the federal treasury. It failed miserably. It’s time to replicate the successful revenue growth of the 80s and early 2000s by cutting all taxes for those who pay them. So let’s eliminate capital gains and dividend taxes, AMT, and the Death Tax. We’ll also cut all personal marginal tax rates and trim the corporate tax back to 18%.
Now that we solved the revenue problem, we can proceed to the real deficit reduction mechanisms; free market entitlement program reforms and a Balanced Budget Amendment. Or, will we opt for accounting gimmicks, such as a few trillion in cuts from the baseline projection of your irrelevant 10-year budget-frame, Mr. President?