What would you do if you saw somebody standing at the top of a skyscraper, about to jump? Would you avert your eyes in horror? Would you watch in dismay as they plummeted to the ground?
These are similar to the thoughts that are going through my mind as I watch Republicans begin the process of capitulating to a tax increase as part of the Supercommittee process.
Indeed, this is one of those moments when I desperately wish I was wrong. I warned back in August that the Supercommittee was a tax increase trap. Republicans have this lemming-like instinct to jump off the cliff, even though they get taken to the cleaners every time they agree to real tax increases and get make-believe spending cuts in exchange.
Here’s a depressing paragraph from a recent Washington Post story.
Tensions have mounted in recent days as two of the GOP’s most fervent anti-tax stalwarts on Capitol Hill — Sen. Patrick J. Toomey (Pa.) and Rep. Jeb Hensarling (Tex.) — have lobbied party colleagues behind the scenes to forgo their old allegiances and even break campaign promises by embracing hundreds of billions of dollars in tax hikes.
What makes this potential sellout so disturbing is that every dollar of tax increases will enable another dollar of wasteful spending.
Here’s what George Will wrote in his latest column about the GOP’s foolish naiveté.
Although only 21 of the 242 Republicans in the House and eight of 47 Republicans in the Senate were on Capitol Hill in 1990, everyone there should remember the results of that year’s budget agreement, wherein President George H.W. Bush jettisoned his “no new taxes” pledge: Taxes increased. So did spending. And the deficit. Economic growth decreased.
So why are Republicans thinking of repeating this mistake? Well, there’s no good answer, but the most commonly cited reason is that they have been misled into thinking that the alternative result – automatic “budget cuts” known as sequestration – is too harsh.
This is an absurd line of reasoning, in part because it is blatantly inaccurate. The supposed “budget cuts” are only reductions if one uses dishonest Washington budget math. For those who rely on real-world numbers, total spending will climb significantly even if the sequester occurs.
Here is a chart that was part of an excellent article by Veronique de Rugy of the Mercatus Center. It shows that spending – including defense spending – will increase regardless of what happens.
The only issue is whether members of the Stupid Party agree to a tax hike so that the burden of federal spending can climb even faster.
The Washington elites want a deal so they can transfer more money to Washington. For American taxpayers, however, the only good conclusion is a Supercommittee deadlock, followed by a sequester.
NEW TIME Today, at 9:30 AM PT: Get the Market Movements in Advance; Williams Edge Webinar for January 28th 2014 | John Ransom
NEW TIME Today, at 9:30 AM PT: Get the Market Movements in Advance; Williams Edge Webinar for January 26th, 2014 | John Ransom