Reframing Tax Cuts As Fiscally Irresponsible

If anything has undermined the rightwing trope that cutting taxes on the rich is the way to grow the economy, it should have been the last 8 years. Yet even today the rightwing noise machine insists that allowing Bush's tax cuts to expire at the end of 2010 -- as they were always meant to do and as Barack Obama said he would do -- is akin to raising taxes and is proof that Obama is a wide-eyed lib who is waging a war on wealth. Well, that argument may have just gotten a whole lot more difficult to make now that John McCain's top economic advisor has called for their expiration in the name of economic recovery.

According to Taegan Goddard:

Though economist Douglas Holtz-Eakin spent the 2008 presidential campaign advising Sen. John McCain to defend the Bush-era tax cuts, he now thinks they should be allowed to expire on Dec. 31, 2010 due to "the prospect of an Argentina-style fiscal meltdown."

Said Holtz-Eakin: "If you ask: 'Who pays the taxes?', it's the first step toward not having the answer be: 'Our kids.'"

This is very interesting because it signals an evolution on the right away from their blind tax cuts are the answer orthodoxy. If I find video of the exact quote I'll post.

Tags: douglas holz eakin, tax cuts (all tags)

Comments

9 Comments

This is just tax fairness

It's impossible to deny (ok, I guess they will try) all the facts and figures that show the TREMENDOUS growth of ownership in wealth the the upper strata in the Bush era.

Point is, they even grew in wealth in the Cliton era with those tax structures, it's just they were on steroids in the Bush regime.

This is simply balance back the scales, because, as this conservative Republican economist states, your choice is back to the potential of middle class growth of the Clinton era, or the USA becomes Argentina.

by WashStateBlue 2009-04-09 02:07PM | 0 recs
Re: This is just tax fairness

Also, with all the stuff Obama wants to do for the common good, the Federal budget simply cannot be underfunded.

by Zeitgeist9000 2009-04-09 02:44PM | 0 recs
Re: Reframing Tax Cuts As Fiscally Irresponsible
When ex-McCain advisors admit that the Bush cuts should, then they should go.
Period.
by spirowasright 2009-04-09 04:16PM | 0 recs
Re: Reframing Tax Cuts As Fiscally Irresponsible

I am all for taxing the rich more than the poor. After all, it is logical. However I feel that Obama is going a bit too far with his fiscal policy. No offense meant but one would think that he suffers from some kind of personal grudge against the upper class in general. I am afraid his policy would make the economic condition of USA even worse. But let's all hope for the best. :)

Disclaimer: I am neither a rich fellow, nor an opponent of Obama.

by marlen456y 2009-04-09 04:16PM | 0 recs
Re: Reframing Tax Cuts As Fiscally Irresponsible

You mean going back to the tax rates when Reagan was president is somehow a grudge against the rich?  Come now...

by LordMike 2009-04-09 04:59PM | 0 recs
Re: Reframing Tax Cuts As Fiscally Irresponsible

This is very interesting because it signals an evolution on the right away from their blind tax cuts are the answer orthodoxy.

the republican/conservative monolith is clearly cracking. There is the crazed extremists that have commanded the republicans all through the Clinton years and the bush/cheney regime. And clearly the above statement could not be said about them at all.

But now that they have caused such extreme troubles for the US, and the majority of the electorate is much less easily fooled by them, even with a compliant and supportive MSM continuing to promote their insanity, there is a small portion of the republican cult wanting to step back a bit. They're still nuts, but not quite as much as the rabid core. The above statement could only maybe be said about this small fledgling faction that is trying to find its way separate from the hard core wingnuts.  

by gak 2009-04-09 06:22PM | 0 recs
Re: Reframing Tax Cuts As Fiscally Irresponsible

Becuase the democratic answer to everything is raise taxes.....

by adb67 2009-04-09 06:43PM | 0 recs
Re: Reframing Tax Cuts As Fiscally Irresponsible

This is good but some comments...

first, was the Clinton era really that good for the middle-income groups, workers and farmers as well as the middle class?  Even the commentator above admitted that economic maldistribution grew under Clinton as under Bush, just not so much.  All that period had to offer the mass of the population was a whole lot of low-wage, part-time, temporary jobs.

second, if you really want to restore fiscal stability to this country, let's repeal ALL tax cuts, going back to 1964.  Let's bring back 90% top rates.  Above all repeal Kemp-Roth (1981).  Oh, and while we are at it, let's cut military spending to below $200 billion a year.

by demjim 2009-04-10 07:01AM | 0 recs
Re: Reframing Tax Cuts As Fiscally Irresponsible

I think your notion of tax cuts being fiscally irresponsible is incorrect.  demjim mentioned the Kemp-Roth bill.  If your goal is fiscal responsibility you need to focus on money in - money out.

1980
Federal Revenue: $517 billion
State Revenue: $368 billion
Total: $885 billion

1988
Federal Revenue: $909 billion
State Revenue: $766.9 billion
Total: $1676 billion

With the exception of one or two years coming out of the 70's federal revenue increased every year.  This is not a matter of getting less in taxes our government just increased our spending.

Lets not redefine the meaning of fiscal responsibility.  Come on.  
If you really want to restore fiscal responsibility in this country....spend what you bring in if there is any left over put it to principle on the pile of debt our representatives in Washington have built up over the years.  

Maybe it will play with some, but I don't think it is accurate.  

by Classical Liberal 2009-04-19 09:04PM | 0 recs

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