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September 23, 2005

Shock: The New York Time Agitates For Tax Increases

The American Thinker reports, essentially, that water continues falling to find its own level. More interesting is this observation, since we're on the subject of pork:

Tax cuts don’t create debt; overspending does. Based on current estimates, the federal government will bring in almost $2.2 trillion worth of income tax receipts in fiscal 2005. This is more than it received during the final stock market bubble year of 2000, and is guaranteed at this point to be an all-time high. If Congress spent the same this year as it did in 2000, there would be about a $400 billion surplus. Unfortunately, spending is estimated to be almost $700 billion more this year than in 2000 - a 39 percent increase. As tax receipts are coming in at a record level this year after two economic stimulus packages, it would be devoid of budget acumen to conclude that the projected $330 billion deficit is caused by anything but overspending.

posted by Ace at 11:57 AM
Comments



No sweat. Bush is fucking famous for cutting spending. "The human hatchet" they call him.

He'll get Congress in line.

Posted by: jamie r. on September 23, 2005 12:15 PM

I believe a character in David Copperfield had something to say about this:

Mr. Micawber: "Annual income twenty pounds, annual expenditure nineteen six, result happiness. Annual income twenty pounds, annual expenditure twenty pound ought and six, result misery."

If only that were true for Congress. Perhaps they should institute some kind of variable pay for the Congresspeople (and President) -- every little piece of earmarked pork gets docked from their office budget and base salary. They should get bonuses if they pass clean appropriations bills. Of course, the Supreme Court would have to be the arbiter as to whether they did that...

Posted by: meep on September 23, 2005 01:17 PM

LINE. ITEM. VETO.

It was declared unconstitutional during the Clinton era. We need a constitutional amendment to explicitly allow it.

LIV is the only way to get the spending under control. Its unreasonable to expect individual congresspersons to slit their own throats(pork==votes). Someone is going to have to do it for them.

Posted by: Tony on September 23, 2005 03:03 PM

I have to laugh at how many people can ignore the fact that all the govt spending of borrowed money AFFECTS the economy! It pays wages (and so reaps taxes) of contractors, the military, etc etc, and money flows into communities, more taxes are collected, etc etc.

I have to repeat the obvious: that does not mean that govt spending is efficient, or necessary, or a good jobs program, or justifiable.

It just means it is silly to ignore that the borrow-and-spend strategy of the current admin, on a scale of hundreds of BILLIONS, has REAL effects on the economy!

Posted by: tubino on September 23, 2005 10:32 PM

In some attempt at fairness to our Congresscritters (and POTUS), probably half of the 700 billion increase was for stuff not occurring in 2000 - eg, Afghanistan/Iraq. But that leaves a heck of a lot of money.

And I agree with the article, which is yet another attempt at pointing out something to the NYTimes and a lot of other people that has been shown repeatedly since the era of Wilson/Coolidge if not earlier: while no panacea, lower taxes release money for growth/improvement/emloyment and result in increased income. There is a breakpoint there somewhere (cut taxes to zero, no income) but it hasn't been approached yet,

Posted by: John Anderson on September 23, 2005 10:51 PM

Not surprising for the infamous New York Pravda this paper is only good as birdcage linning

Posted by: spurwing plover on September 26, 2005 11:04 AM
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