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Public Lies about Tax Cuts
2/10/2011
A couple years ago I happened upon a C-Span presentation sponsored by the American Heritage Foundation of conservative economists discussing tax policy. What was fascinating to me was that not one of these economists would agree now with the so-called "supply side" argument that if you lower taxes the revenues to government increase. Now, these were not politicians, they were economists talking to one another, and though they were all in the "conservative" camp they could not just repeat what has become the prime credo of Republican politics.
Now, at one time this idea may have had some merit. Under Eisenhower in the 1950s the top rate on income taxes was 91 percent! When Kennedy reduced that rate there could have been a stimulative effect. But when rates are already very low in comparison a further decline won't make much difference, it will just mean that tax revenues decline so government cannot pay its bills. And that is what has been happening now for the past decades. Under both Reagan and Bush the deficits have exploded because of their tax cuts which did not produce the expected revenue. So history is absolutely clear now and conservative economists know it.
But the message hasn't gotten to the politicians. David Corn has written this at Mother Jones:
Moments before the new Republican House was to be sworn in, Rep. Tom Price (R-Ga.), the head of the House Republican Policy Committee and the chamber's fifth-ranking GOPer, was standing in the ornate Speaker's Lobby of the Capitol, near a roaring fire. In the celebratory hustle and bustle—new members rushing to pick up lapel pins and license plates, their kids noisily exploring the building—a reporter approached Price with a question: How could he reconcile the GOP's pledge to tame the deficit with its decision to dodge budget calculations about the costs of tax cuts and repealing health care reform? Without missing a beat, Price replied, "It doesn't cost the government money to decrease taxes. When you decrease taxes, as President Kennedy proved, as Reagan proved, you increase revenue to the federal government."
Now, what is this? Is it a complete delusion, a refusal to face facts caused by ideological blinders? Or is it intentional and literal public lying? Here you have a major Republican congressional leader saying something which is just completely untrue. If he is not lying, but just deluded, then public policy established on the basis of a false belief will be bad for the country, it can't accomplish what is being claimed. If he is lying then he is morally reprehensible and should be ejected from office. But wait a minute, this kind of thing is being said by a whole lot of Republican leaders today, so they are all either deluded or lying. Either way, a country being run by delusions or lies is not one which can be successful in the world today.
David Corn goes on in his article to report the views of David Stockman, Ronald Reagan's first budget director. Stockman thinks it is lying: "Republicans like Price were, in Stockman's view, misreading history—even perverting the Reagan message. As he saw it, they were guiding the nation toward financial ruin by pushing for tax cuts without having the guts to seriously slash spending—and dishonestly justifying their "flimflam" by citing his work."
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