12/16/10

The Loss of Personal Finance



Could maintaining the current tax rate increase the deficit as the Leftists claim? Depending on rhetoric, yes, if non-existent money the government never had was already planned on being spent and counted as a loss. That's like purchasing a $1000 TV on sale, 50% off from $2000. You wouldn't tell your wife you made $1000 and got a free TV. In truth, you lost $1000 but got a TV. What's worse, you already have a TV. You only made the purchase because there was a sale!

Ultimately, increased taxes won't decrease deficits as government will always find a way to spend any new money coming in. Often they spend it before it's even there! It's cutting spending which reduces deficits. Careful of Leftist rhetoric. Reducing taxes is not the process of taking money from government, the pile of taxes we paid last year, and giving it to rich people. Taxes aren't trouble… spending is.

1 comment:

  1. In 1978, while testifying to the Senate Finance Committee, the economist Alan Greenspan said, "Let us remember that the basic purpose of any tax cut program in today's environment is to reduce the momentum of expenditure growth by restraining the amount of revenue available ..."

    Or as George W. Bush liked to say, "I've learned that if you leave cookies out on a plate, they always get eaten."

    (from here: http://www.cnn.com/2010/OPINION/12/13/zelizer.george.w.bush/index.html?hpt=T2)

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