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Another Round of Tax Cuts
Now the Republicans are talking about another round of tax cuts. Just in time for the November election. Whether or not these tax cuts actually get passed is anyone’s guess, but it will be an issue on the campaign trail, either because they delivered the tax cut or because the only thing standing in the way of a tax cut is the Democrats. Remember the individual tax cuts were passed the last time are temporary – they phase out. The corporate rates do not phase out. Of course, all tax cuts are temporary because any Congress can raise taxes any time it wants, so it’s just semantics.
Temporary Tax Cuts Were a Lie
The reason they had to make the individual tax cuts temporary was so that they can pretend that the increase in the budget deficits was not going to be as high as everybody knew that it was. The presumption was that Congress would vote to extend them. Here we are, not even a year has gone by and the Republicans already want to come back and make them permanent, which shows that the temporary tax cuts were a lie.
Government Revenues up 1% – Government Spending Up 7%
The August budget deficit was $211 billion – nearly double the deficit that we had in the same month last year. In the first 8 months of the year, the deficit is $895 billion. This is a trillion dollar deficit during a supposedly booming economy. If we can’t generate surpluses in a booming economy, imagine the enormity of the deficits when the economy is not booming,. Imagine how bad the deficits will be when the economy is actually in a recession. In this most recent year, the deficit is $222 billion higher than the previous year and government spending is up 7%, yet revenues only rose 1%. So it is not closing the gap, not by a long shot.
Too Big to Bail
The U.S. government is too big to bail – not too big to fail – too big to bail. Of course the government technically does not need a bailout; it just prints more money. Of course, that’s the problem. They will print money that nobody wants and the currency is going to collapse.
Saying Yes to Socialism Says No to Prosperity
Recently on the Bill Maher show Jim Carrey said, “Socialism is great, so why don’t the Democrats just embrace it? Say yes to Socialism, already. Now they can come out and openly declare that they are Socialists now because everybody likes it. When you say yes to Socialism, you’re saying no to some very important things, like individual liberty, freedom, prosperity. Voters don’t know that. They just think Socialism is a bunch of free stuff, and they get more free stuff under Socialism than under Capitalism. People want stuff.