Showing posts with label tax cuts. Show all posts
Showing posts with label tax cuts. Show all posts

Tuesday, July 26, 2011

Maybe tax cuts will work one of these years



The Creed still has power: Raising taxes on the wealthy kills private-sector jobs. Cutting taxes on the wealthy spurs private-sector jobs.

Nobody – certainly not the mainstream news media – bothers to ask after a decade of reduced taxes, Well, where are the jobs? Instead, Republicans just keep mouthing the Creed. To keep taxes from being raised on the rich, House Republicans are even willing to block the United States from paying its bills – a move that promises to throw the nation into financial chaos.

President George W. Bush took a big bite out of taxes for the rich. So the number of private-sector jobs soared, right? Wrong. In fact, the Bush presidency saw a drop in such jobs – from 111,634,000 to 110,981,000 – according to the U.S. Bureau of Labor Statistics.

(Public-sector jobs rose, by 1.7 million. But the Creed holds that cutting taxes boosts private-sector jobs and that government jobs are a net negative for the economy.)

History has no relevancy to Republicans. Bosh to facts! Their belief is in things unseen. Tax cuts are their religion – their salvation.  Thus, they put intense pressure on Obama to keep Bush’s tax cuts. And against his better judgement he did. Now, Republicans characterize Obama’s fiscal policies as a failure. They thus implicitly acknowledge that the extension of the tax cuts flopped.

Yet, they fight raising taxes to help close the federal deficit and, instead, propose to take from the needy to give to the greedy, as is their wont. Confronted by the rare journalist who points to the long history of tax cuts that didn’t yield jobs, they speak louder and in a more indignant tone. The problem is not that taxes are too low; the problem is that spending is too high. Yeah, yeah.

Actually, the problem is their belief that, if they keep doing the same thing again and again, they will one of these years see a different result.

Thursday, October 14, 2010

Feingold's challenger backs theories that blew up in Bush’s face

Ron Johnson, the Republican who may oust Wisconsin Democratic Sen. Russ Feingold, expresses the belief that sunspots, not car tailpipes or factory smokestacks, are melting the polar ice caps. Not a bad hunch, actually.

The rising sun plays with the Di Suvero sculpture
The Calling
in Milwaukee
The sun, after all, is Earth’s furnace. When the planet warms, a natural question is: Did somebody turn the furnace up? Sunspots indicate that somebody or some process did. Thus, many scientists have looked into the issue of whether a hotter sun means a hotter planet.
The overwhelming conclusion: Not really. Here’s the way Scientific American put it last year: “Many climate scientists agree that sunspots and solar wind could be playing a role in climate change, but the vast majority view it as very minimal and attribute Earth’s warming primarily to emissions from industrial activity — and they have thousands of peer-reviewed studies available to back up that claim.”

Yet, in his debates with Feingold, Johnson persists in his convenient belief that sunspots are the global warming culprit, rather than accept the inconvenient truth that, by emitting gasses that trap the sun’s heat, human activity is the actual villain. His persistence suggests a mind hostile to the scientific process – a suggestion reinforced by some of his other political notions.

Ron Johnson
The scientific mind does formulate theories to explain what’s happening, as Johnson did. But the next step is to submit the theories to rigorous scrutiny and then – and here’s the stumbling block for Johnson – to go where the facts lead.

Take this tax-and-spend thing. Johnson expresses the belief that extending President Bush’s tax cuts for the wealthy would spur the economy. Again, not a bad hunch. The more of their dough billionaires keep, the more they can spend to create jobs. Common sense, right? Trouble is, this theory has actually been tested in practice, and with miserable results.
Despite the tax cuts, private-sector job growth was painfully slow during the Bush years and the economy ultimately crashed. And there was this other little thing: The budget surpluses Bush inherited from President Clinton turned into deficits. These pesky facts don’t deter Johnson, though. Note that the Oshkosh businessman is toeing the Republican Party line on taxes – an indication that the preference for theory over contrary facts is party-wide.

Johnson voices the bedrock Republican notion that government regulation is bad. Again, the theory that governmental red tape jams economic gears makes some sense on its face. A business has to take time out from producing goods or services to fill out governmental paperwork and to clear bureaucratic hurdles. But over the last several decades, government has in fact loosened regulations. Two recent calamities – America’s financial meltdown and the BP oil spill in the Gulf of Mexico – demonstrate spectacularly what happens when government rules or their enforcement are too lax. Johnson ignores these developments, which fail to back up his theory about the intrinsic evil of regulation.

Johnson set the tone at the start of his senatorial campaign by telling a whopper that has made it into the realm of The Big Lie, a falsehood repeated so many times that it eventually sounds true. The millionaire ran an ad in which he said government doesn’t create jobs – a statement that makes no sense whatever on its face, but that sounds legit nonetheless due to constant repetition on the political right. Were government merely to create a post of paper shuffler, it’s creating a job – real in the sense that the person who holds it gets real money, which would support a family, who would spend the money on goods and services and thereby help keep the economy humming.

Typical government workers do more than shuffle papers, of course. The services they perform boost the economy, providing the law and order that commerce needs to thrive, moving the mail and the parcels on which business depends, schooling the next generation of business leaders and workers, keeping contagious diseases at bay, maintaining licensing systems to help keep automobile traffic orderly, helping shops get back on their feet after natural disasters.

Also, government creates jobs though contracting out services and through economic development initiatives, which, as it turns out, have benefitted Johnson’s plastics firm.

The Big Lie supports the theory that government is of little use – a theory to which the Bush administration subscribed to its detriment. Remember Katrina, the beginning of the end for the Bush White House? That administration’s disdain for government – anybody can run an emergency management agency, you don’t need an expert – helps explain its inept response to the disaster.

Wisconsin seems on the verge of electing a senator who gives pet theories more weight than facts – specifically, the facts that made lies of the theories during the Bush years.