Thursday, January 12, 2006

A chance to explain how taxes work

Check out this report from the Associated Press

WASHINGTON - (AP)The federal government posted the first budget surplus for December in three years as corporate tax payments hit an all-time high, helping offset a record level for spending, the Treasury Department reported Thursday.
Click here for full article

When a politician asks questions like "how do you expect to pay for these tax cuts?" it proves they don't know the first thing about economics. With marginal tax rates lower than they've been in decades you'd think it would be impossible to see "corporate tax payments hit an all-time high." After all we know that the rich pay squat in taxes so that they can keep their wealth while school children have their lunches taken away and drink poisoned water...oh and grandma has to eat cat food to pay for her medicine. Of course this is all a myth as school children don't eat their lunches anyway and cat food is way too expensive for even grandma to eat.

While record tax receipts will go largely unreported so will the "record level spending" that our government continues to levy against future generations. Supply-siders have it half right...you can get more revenue by lowering taxes rates but it isn't a license to spend $1.50 for every dollar of revenue.

2 comments:

Esther said...

I agree. Supply side economics works, but overspending does not. Good post.

Steve said...

I'd rather see government smaller than taxes lower. I would feel better about paying taxes that way. I'd be willing to pay someone privately for anything I else I needed. That way I could buy my own grandmother her catfood.