EDITOR OF REDSTATE
Things to Cut?
Paul Krugman wants to tax all sorts of things and in his zeal to tax (coupled with his partisan hackery) he chooses to ignore the GOP was willing to raise taxes on the Super Committee.Krugman wants to tax the rich, tax financial transactions, tax pretty much everything. It has become the Democrats’ mantra: tax, tax, tax.But they still can’t deal with this question: if we raise taxes on everybody earning $200,000.00 a year or more to the Democrats’ preferred level, whatever that level might be, we still won’t have enough to close this year’s budget deficit, let alone actually start whittling away at the national debt. So what do we cut?But wait, there’s more.
Historically, tax revenue into the federal government has averaged 18.5% of GDP. It has gotten as high as 21%, but only during the major economic boom and dot com bubble of 1998. It didn’t last long. The historic average returned.The historic average existed both before and after the Bush tax cuts. That’s right. The rate of revenue into the Treasury was not significantly impacted by Bush’s tax cuts. The biggest impact on tax revenue has been the loss of American jobs.As Marco Rubio said earlier this year, we don’t need new taxes. We need new tax payers.So again, if we raise taxes and it won’t even close the budget deficit and if we raise taxes and still average out at about 18.5% of GDP, what should we cut to close the deficit and what should we do to get Washington’s spending back to 18.5% of GDP?The Democrats won’t answer that because at the end of the day they, like the GOP, agree with Dick Cheney. To them, deficits don’t really matter. It’s all politics.