XEKE.com -- A Squandered Opportunity

A Squandered Opportunity

It is becoming apparent now, and will be glaringly obvious in the coming months and years, that the now defunct Republican majority set the Conservative movement and the country back twenty to forty years by not making more tax cuts permanent. Let me explain.

The Pelosi leadership of the 110th Congress recently announced a rule stating that should any Congressman want to increase spending in a particular bill they must show where the money will come from, either with cuts in another program (which is okay with XEKE.com) or by showing a tax increase (to which XEKE.com is categorically opposed). What is so damaging about this rule is that it is fundamentally flawed, and it will cement into the public’s collective mind the myth that raises in taxes increase revenue to the treasury and tax cuts decrease revenue to the treasury. Nothing could be further from the truth!

A strategically kept secret by the Mainstream Media during the middle Bush years was that the treasury grew as a result of the tax cuts during the early Bush years. How can this be? Cutting taxes leaves more money in the hands of the U.S. citizens (their own money). This then allows them to have greater purchasing power which can then be subject to consumption tax. They also have money available to expand their business and hire a new employee or two who then become part of the taxpaying public. See how this works? The flip side of the coin is that by raising taxes, money is taken away from the citizens who then have two think twice about making that new purchase or hiring that new employee.

Furthermore, the federal budget is bloated as it is. Certainly a military must be maintained, and we can all agree that the government does some good as far as maintenance of roads, sewers and a justice system are concerned. However, there is incredible bureaucacy and abuse that wastes the revenue collected our that for every dollar that is collected in taxes, only a small percentage can actually go to something useful. (This percentage has not yet been calculated because if the general public were aware of the degree of wastefulness, there would be bloodshed outside the Capitol building.)

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"What is this waste?" you ask. Any program that uses tax dollars taken from a taxpayer of income "X" and given as a "benefit" to a taxpayer of income "Y", or better yet, to a non-taxpayer. The great economist, Walter E. Williams, likened this to legalized robbery. No one would say that it is legitimate or excusable to take $200 from someone on the street if they gave the defense, "But I was just going to use it to buy healthcare for my grandmother, or feed my poor neighbor, or support that artist. However, every election cycle millions go to the polls and vote for a politician who will use the power of the government to take that $200 from the person on the street and use it to do all sorts of things.

This type of taxation is nothing more than legalized robbery!

Taxation robs individuals of incentive to work harder because the individual knows that at some point the fruits of his extra work will not go to him, but to the government, and some recipient who did not work as hard as he did.

Republicans had the chance to make all of these arguments, and more, from 1994-2006, but they squandered the chance. Now we have to settle for Pelosi, et al, and their iminent tax hikes. When will Conservatives have another chance to enact Conservative principles?

Mid-November, 2006