Unlike the president, Republican Senate candidate Rand Paul of Kentucky understands what tax increases would mean for the still struggling US economy. “If there is any one thing that could push us from a recession into a depression possibly,” he warned last Saturday, “it would be a large tax increase.”
President Obama lambasted Republicans in his Weekly Address yesterday for supposedly making an ideological stand on the back of the unemployed. “They’ve got no problem spending money on tax breaks for folks at the top who don’t need them and didn’t even ask for them,” he complained, “but they object to helping folks laid off in this recession who really do need help.”
Paul, son of libertarian Texas Congressman and former presidential candidate Ron Paul, makes more sense. “The other side believes that government creates jobs and that government is the answer,” he told a Lexington crowd this weekend. “Our side believes that entrepreneurs and businesses in the private sector create jobs.”
He further warned that if the tax cuts enacted under President George W. Bush are allowed to expire next year, it could push the economy over the edge. Democrats, on the other hand, consider it a nifty way to take care of their budget woes. Taxing the rich like before would take away almost half of their deficit, currently at a record height of over $1 trillion.
Republicans like Paul understand that higher taxes will quickly and inevitably curb growth and prolong the recession. What the budget, and the economy, needs is less government, not more of it.