Big Dogs Weblog

Economy Now Good, OK to Raise Taxes

by Big Dog on Nov 14, 2006 at 12:40 Political

What is the first thing Democrats like to do when they are in control? Everyone all at once now, that’s right, raise taxes. It does not matter what promises they have made in order to get elected and it does not matter how much money the government is wasting, and it really does not matter to them that there is a good economy so long as they get to raise taxes. Like Pavlov’s dog, Democrats have a conditioned response to winning the majority and that response is raising taxes.

The economy is strong and has been for years. It is fueled by tax cuts that give people more of their money to spend and thus increases revenue to the treasury. In fact, inflation fell at a record pace in October of this year in part because of falling gas and new car prices. Speaking of gas prices, the Democrats were certain that the big oil companies were deliberately manipulating the price of gas in order to help Republicans. I heard more than one Democrat on talk shows asserting that this was the case and that gas prices would go up as soon as the election was over. It has been a week and the prices are still low. It is amazing how many so called smart people in government do not understand supply and demand.

Democrats have been telling people for the last few years that we have a terrible economy and that it looks good but there are no “real” jobs and wages are poor. The MSM trumpeted this claim as revenues to the treasury reached all time highs (the two records were set last September and this September). The tax cuts that Democrats claimed would send the economy into the tank had the opposite effect, as they always do. Now that Democrats are in charge, former Secretary of the Treasury under Clinton Robert Rubin, says that taxes need to be raised. This is unwise but Democrats need to raise money for the myriad of programs the want to enact. Universal health care and minimum wage increases will cost a great deal of money and politicians never decrease spending or cut pork so they need to look for, what they term as, alternative sources of revenue (which means increased taxes). Interestingly, Rubin made claims in 2003 that the economy was not strong enough for tax cuts and now that those cuts have given us a strong economy he is saying the economy is strong enough for a tax increase. Isn’t it amazing how quickly the economy gets better when Democrats are elected to the majority?

George H. W. Bush ran on a platform of no new taxes and committed political suicide when he broke that promise. He was snookered by Democrats who attached the increase to a women and children’s bill. He was put between a rock and a hard place because if he vetoed it they would claim he did not look out for needy women and children. he signed it and the rest is history. It appears that Democrats want to try much the same. According to the Wall Street Journal, Hillary Clinton and the Democrats would love to get a tax increase and take that off the table for the 2008 elections. George W. Bush would do well to learn from the mistake his father made and ensure he vetoes any tax increase regardless of what bill it is attached to, including spending for the war. He can send it back and explain to America that it contained a tax increase and that he is not going to raise taxes. If he signs a tax increase he will be playing into the Democrat’s hands and will put the chances of a Republican president in jeopardy for 2008.

Politicians in general have no fiscal responsibility. They have spent so many years spending money that they do not earn that they think there is an endless pot of cash sitting around ripe for picking. They all dole out huge sums of money in pork projects in order to secure reelection. Democrats specifically, never met a tax they didn’t hike and love to spend money like it is going out of style though many Republicans fell into this pattern over the last 12 years. All this bunk about tax cuts helping only the rich is mindless prattle. Tax cuts help the people in society who actually pay taxes. People who complained about not getting a refund check should start paying taxes and then they can get a refund when the taxes are lowered. Tax cuts, though not directly paid to those who pay no taxes, help those people nonetheless because the economy is stronger, there are more jobs and the price of most goods becomes more affordable. A strong, healthy economy helps everyone.

Hold on to your wallets because the Democrats are back in town. Fortunately we have a Republican president so the tax increases will not necessarily be automatic, assuming Bush has the testicular fortitude to veto any increase. If he allows taxes to go up then he proves that the apple does not fall far from the tree and, in my opinion, he should be taken to the town square and thoroughly thrashed.

Tags: Commentary, Political