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Lincoln Mitchell

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The Cost of Radical Anti-Tax Rhetoric

Posted: 07/10/11 03:00 PM ET

Opposition to almost all taxes has been the defining characteristic of the Republican Party for several decades. At least as far back as the late 1970s, the Republican Party has identified cutting taxes as the key to solving almost any economic problem. For Republican ideologues the best way to stimulate the economy, create jobs, balance the budget, bring people out of poverty, improve education, develop a better health care system or virtually anything else has, for some time now, been to cut taxes.

This has been an important part of the Republican Party's electoral appeal, and indeed message, for most of this time. Most people don't like paying taxes; and it is not hard to convince people that they are taxed too heavily, despite the ample evidence to the contrary. Similarly, in a country as large and complex as the U.S., it is never difficult to find government and bureaucratic waste to use as "proof" that tax dollars are being wasted.

For more than a generation, Republican candidates for almost every office have campaigned on the need to cut taxes and have successfully intimidated the Democratic Party into keeping silent regarding the need for taxes in a modern state. This anti-tax rhetoric has contributed to the current debt problems facing the U.S. as decades of increased spending while reducing taxes, including during periods when the borrow-and-spend Republicans were in power, have put the U.S. deep in the red. That the result of cutting taxes and increasing spending is increased deficits should come as a surprise to nobody, but nonetheless demonstrates the danger of the extreme anti-tax position of the Republican Party.

During the last two or three years, the Republican Party has sought to link their anti-tax sentiment to concern about the debt and an attempt to present themselves as the party of fiscal responsibility. The latter effort has occurred despite the massive debt which was created, and largely ignored by Republican policy makers, during the presidency of George W. Bush. The current negotiations around the debt ceiling have demonstrated once again that Republican concerns about the debt end when any discussion about raising taxes begins. President Obama's proposed deal features enormous concessions to the Republicans, but it will not win Republican support because it also calls for slight tax increases.

Obama's penchant for compromise, often as a good in of itself, rather than as a means of achieving a policy goal, has angered progressives who believe the President is giving away too much to the Republicans. However, Obama's offer has also put the Republican congressional leadership in the position of either convincing their more radical members to support a proposal like Obama's or concede that the Republican Party has become, on economic issues, little more than a cheering squad for tax cuts with no ability to govern, even when they stand to win.

The most recent demonstration of anti-tax fanaticism by the Republican Party may present an opportunity for the Democrats, and even become something of a liability for the Republican Party. While calling for tax cuts remains a reliably winning campaign tactic, current Republican actions demonstrate more clearly than ever how the anti-tax view of that party undermines their ability to govern and exposes the hypocrisy of their alleged concern over the deficit. If the Republicans reject a debt ceiling deal that tilts far more heavily towards spending cuts than revenue increases, it will make it clear to voters that the Party is not serious about reducing the debt, but sees that as secondary to fighting taxes.

The Republicans have been successful running on anti-tax platforms for years, but in 2012 they will have to run on a position that cutting taxes is such an extreme priority, on which there can be no flexibility, that it is even more important than addressing the other issues which, the Republicans themselves, have said threaten the future of our country. At its core, the anti-tax agenda of the Republican Party has always been about shifting wealth from the poor and middle class to the wealthy, but it will be more difficult to conceal this if the Republicans continue their inflexibility on the need to increase revenue to address long term U.S. fiscal problems.

For several years, the Republicans have sought to convince the American people that the debt is the biggest economic problem facing the U.S.. This may or may not be true, but enough Americans believe it now that the Republicans may face electoral consequences if they continue to eschew any compromise on the debt ceiling that includes any efforts to increase revenue. It is possible to believe that cutting taxes is always the right thing to do; and it is easy to point to the debt as an enormous problem facing the U.S., but doing both at the same time, as the Republicans have tried to do, is becoming increasingly less possible.

 
 
 

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Opposition to almost all taxes has been the defining characteristic of the Republican Party for several decades. At least as far back as the late 1970s, the Republican Party has identified cutting tax...
Opposition to almost all taxes has been the defining characteristic of the Republican Party for several decades. At least as far back as the late 1970s, the Republican Party has identified cutting tax...
 
 
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HUFFPOST SUPER USER
Michael J OConnell
Enduring curiosty and quest for rationality
08:08 PM on 07/11/2011
The Republicans have stated a position of no tax increases. They have said it enough times that giving it up would be extremely painful. This is just the way it is with negotiations. Had they remained with principles they would have allowed greater flexibility for themselves. But they painted themselves in a corner instead. If the Democratic party can position this correctly they will indeed make the Republican party look like they are unable to govern and stand only for the rich. In spite of being pissed that SS, etc. are on the table I am very interested in seeing how this turns out.
HUFFPOST SUPER USER
noelny11411
06:43 PM on 07/11/2011
You are right Lincoln, but don't forget the number of multi-millionaires, and yes, billionaires that are also members of Congress. Last week, Eric Cantor walked out on deficit reduction talks with Vice President Biden. This behavior undermined confidence in America's ability to meet its debt obligations. Today's radio business broadcast mentioned that the value of US Treasuries is heading south on the bond market. All this while Eric Cantor is holding shorts on US Treasuries in the bond market. Can it be that Eric Cantor is engineering a default on the debt ceiling in order to make a quick buck on the bond market?
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HUFFPOST SUPER USER
Joseph Furtenbacher
No one you know...
05:18 PM on 07/11/2011
Like taxing babies on their candy.
HUFFPOST SUPER USER
archstantn
04:35 PM on 07/11/2011
Anti-tax rhetoric is merely part of the Republican Party's anti-government bias, which has been central to the Republican agenda of at least the last thirty years. A government that serves the needs of the people is antithetical to these Republicans. These Republicans are far different from those which used to dominate the Party. Ford, Nixon, Goldwater and Eisenhower would scarcely recognize these "new" Republicans as one of their own.

Free-market ideologues, privatization fanatics, deregulation proponents, all, they deny any role for government in commerce whatsoever. They seek a Plutocracy by default. The perfect marriage of government and wealthy corporations is their goal. Combined with a conservative "social agenda", complete with hyperbolic patriotism, old fashioned religion, and an extreme reverence for "tradition" and we have, regretfully, America's version of Fascism.
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HUFFPOST SUPER USER
alexeiz
Since I lost all hope, I feel much better!
04:57 PM on 07/11/2011
Far right shouldn't be called "consrvatives". The proper, based on any good dictionary name is "radical reactionaries".
04:14 PM on 07/11/2011
As with almost all democrats, you and many others believe it is just ok to take and take and take more taxes from hard working americans, be they rich or poor. How much of a percentage is enough in your minds? 50, 60 or 70 percent or more? Lower taxes should be a welcome thing on any person in america. We do not have a revenue problem in this country, WE HAVE A SPENDING PROBLEM!!! I will concede the fact that the last republican led administration was a spend happy bunch, but the administration we have now has gone into overdrive with spending. It isnt ok with me for them to just keep spending on all their entitlement programs and just expect me to be ok with them taking more from me to do it. I will give them the middle finger every chance I get. I also say to hell with the debt limit. We cant keep that up either. I also also admit many republicans voted to raise it many times in the past. At some point we have to say ENOUGH IS ENOUGH!!
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pickles n pops
No more payroll tax cuts Mr. Obama!
08:45 PM on 07/11/2011
Phillip, we should return to the federal income and inheritance tax rates in effect during the Eisenhower Presidency. To quote you, "At some point we have to say ENOUGH IS ENOUGH!! "
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HUFFPOST SUPER USER
ThePeoplesKey
Writer/General Disreputable Rogue
03:58 PM on 07/11/2011
"While calling for tax cuts remains a reliably winning campaign tactic, current Republican actions demonstrate more clearly than ever how the anti-tax view of that party undermines their ability to govern and exposes the hypocrisy of their alleged concern over the deficit."

True for people with intelligence who understand the meaning of the word "hypocrisy." But for the majority of the ignorant right, who have bought the argument from their ignorant leaders that running the US government so no more complex and no different than running your household budget, your analogy is probably to complex to understand. Even faced with overwhelming evidence that the Bush tax cuts severely cut tax revenue and greatly contributed to the national debt, republicans will still argue that cutting taxes INCREASES revenues. The math just doesn't add up. But try convincing them of that.

This is like saying, if I reduce sales transactions in my business, I'll increase my bottom line profits. If that ludicrous thought process could ever be true, If I closed the business, my profits should increase exponentially according to the right. Thinking along the same lines, if we eliminate all taxes, tax revenue would increase exponentially.

It's completely nonsensical yet we're supposed to respect that as their opinion. I think not . . .
04:12 PM on 07/11/2011
Actually, they have been calling for lower taxes since 1920, when a recession worse than the one that kicked off the "Great Depression" was corrected in less than one year by lowering taxes and cutting spending in half.
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HUFFPOST SUPER USER
Jim Milks
Ecologist
07:50 PM on 07/11/2011
Really? You must have learned a different version of American history than the one I learned.

http://www.fsmitha.com/h2/ch15wd.html
03:41 PM on 07/11/2011
Cutting regressive taxes (payroll, sales, state flat income, & flat property taxes) and replacing the lost income with progressive (tiered marginal rates) taxes based on cost (property & sales) and income would have a dramatic affect on commerce and jobs. It would create more demand as the lower incomes would increase their standard of living. Cutting income taxes which (as Republicans are fond of saying) only increases the amount in one's pocket and is very slightly incremental in increasing demand. No one ever invested a cent in a business out of altruism.
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pickles n pops
No more payroll tax cuts Mr. Obama!
03:35 PM on 07/11/2011
The rich claim that the federal income tax is too complicated (remember Gingrich standing on the US Capitol steps in 1995 with a Mobil Oil executive, behind a table with a tall stack of papers purported to be the US Income Tax Code?), but they're the ones who made it so, by successfully lobbying Congress for special exemptions for themselves. (The poor use the 1040EZ to file their taxes.)

The rich claim they want a flat tax, but the federal payroll would be flat, if the rich hadn't capped it to exclude most of their income.

The rich claim that John Linden's "Fair Tax" (a national sales tax) is the way to go, but when Clinton imposed a sales tax on luxury goods in the early 1990s, the rich lobbied furiously, until it was repealed.

Then rich don't want to pay any taxes at all. The rest of us would rather not have to pay them either, but it is only the rich who have the influence to have it their way.
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pickles n pops
No more payroll tax cuts Mr. Obama!
03:02 PM on 07/11/2011
Is the increasing concentration of wealth into fewer and fewer hands desirable? Is redistribution of that wealth undesirable? Is it socialistic to redistribute wealth? If it is socialistic to redistribute wealth, is that a bad thing? Is socialism evil? Is capitalism evil?

The logical outcome of starving a government of revenue is to force it into bankruptcy. When that occurs, the liabilities associated ed with benefits and pensions for government workers, and retirement trust funds like Social Security and Medicare can be negated, and government assets can be sold off to those with the wealth to buy them.

Then we can all become serfs to our feudal masters owning the roads, the libraries, the police and fire departments -- and our minds, since only propaganda reinforcing this hegemony will be permitted to be dispensed in our schools and libraries. as is already the case with most of our media.

Don't look now, but it's already happening. http://www.huffingtonpost.com/social/pickles_n_pops/debt-ceiling-showdown-james-clyburn_n_890116_95731214.html
02:53 PM on 07/11/2011
Progressive taxes are what keep the masses from cutting off the heads of the weathy and powerful. Paying taxes is the price the wealthy pay to keep their heads. Plus it's not particularly nice to after weave around people dying in the streets in your Mercedes.
02:41 PM on 07/11/2011
The average worker in the US who has bills to pay and are earning just enough to pay those bill don't hope to find a job that PAYS LESS. Why does the GOP want our government to earn less when paying their bills/????
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HUFFPOST SUPER USER
Bruce H Majors
Libertarian avenging angel coming for
02:25 PM on 07/11/2011
We must move beyond anti-tax rhetoric and actually start rounding up tax predators in the night, seizing their assets and selling them off to relieve the tax serfs. The homes of Kerry, Daschle, Pelosi, etc must be auctioned. That's a tax we can get behind!
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HUFFPOST SUPER USER
Michael Ruiz
12:55 PM on 07/11/2011
If I went to your house with a gun and Demanded a percentage of your income would you call that theft?

Now If I got a politician to pass a law saying to demand a portion of your income is that theft...?

Income Tax is theft, We didn't even have an income tax until 1913... Coincidentally it was the same year the Federal Reserve was concepted
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HUFFPOST PUNDIT
marco01
01:18 PM on 07/11/2011
Nope, it's not, nothing unconstitutional about taxing income. What's the alternative, a regressive sales tax? What a stvpid idea that would be, if you want to see the wealth gap explode to ridiculous levels, institute such a system. You have representation, therefore income tax is not theft.
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HUFFPOST SUPER USER
Roy Merritt old car guy
Loves Nostalgia Dragsters
01:57 PM on 07/11/2011
You need to study history. We didn't have an income tax because the government had Tariffs and taxes on goods plus transactions. Taxes have been collected by governments for thousands of years but your government in the United States is run by the people and we decided that it would be better if income were taxed rather than some of the other ways because everyone has income. Thomas Jefferson commented on taxes, while this is not about income but it does give you the prospective that our founding fathers believe in graduated taxes based on income levels. Qoute, " Another means of silently lessening the inequality of property is to excempt all from taxation below a certain point and to tax the higher portions of property in geometrical progression as they rise. Thomas Jefferson to James Madison, 1785. Governments have to tax to govern and societies cannot exsist without governments.
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HUFFPOST SUPER USER
Michael Ruiz
02:41 PM on 07/11/2011
I have studied history... We didnt have an income Tax then because the Bankers hadn't had full control over our currency yet. It wasn't til 1913 when Woodrow wilson signed The Fed Reserve Act into law that an income tax was possible. Why? well we have to pay the interest on the money we borrow from international Bankers who create it out of thin Air. Income Tax is theft.... What Jefferson is referring to is a tax on the elite estates and not on the average citizen. Those who wrote the constitution wrote it with the idea that the wealthy would act in an altruistic manner. Stop thinking like a slave... I know its hard after so many years og Government indoctrinated schooling. "I am a most unhappy man. I have unwittingly ruined my country. A great industrial nation is controlled by its system of credit. Our system of credit is concentrated. The growth of the nation, therefore, and all our activities are in the hands of a few men. We have come to be one of the worst ruled, one of the most completely controlled and dominated Governments in the civilized world no longer a Government by free opinion, no longer a Government by conviction and the vote of the majority, but a Government by the opinion and duress of a small group of dominant men." -Woodrow Wilson
MThomasNC
Retired, Sassy, Senior Citizen
11:55 AM on 07/11/2011
The real purpose of cutting taxes is to starve the govt, so that most things govt do can be privatized. Over the past 30 years they have been successful in their goals - creating unpaid for wars, outsourcing jobs thru harmful trade deals that benefit corporations, cutting tax rates, deregulation, busted private sector unions now after public sector unions, privatized military functions except fighting, etc. This morning I heard a conservative guest on c-span say that we should privatize TVA, Postal Service, AMTRAK, all toll roads, etc. This is what they want to do.
We can not forget the role 'blue dog' centrist dems played into supporting republican administrations and their corporate masters.
Since 2007 blue dog dems have controlled the senate - it's where all progressive legislation go to die. We saw this with 2009 Stimulus Plan, HC Reform, Financial Reform where strong progressive bills went to senate and got watered down, then republicans say 'govt don't work.'
So we dems need a better narrative - republicans tell a better story and they stick to that story no matter what the questions are: CUT TAXES. Dems are all over the place.
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HUFFPOST SUPER USER
chriss0114
the meanderings of a madman
12:34 PM on 07/11/2011
F&F'd!!

and prvatizing ALWAYS costs the government MORE money and LESS service results despite the higher costs like the part of Medicare that was privatized then resuklted in a 20% higher price
ThePeacemakers
Concerned Citizen
12:56 PM on 07/11/2011
"so that most things govt do can be privatized­..."

The funny thing is they may have created an "anti-tax" narrative that will continue.
"Privatized" things still use alot of taxpayer dollars and the narrative they developed so well will eventually be used against that.
03:11 PM on 07/11/2011
If a portion of government services can be successfully privatized, it means that there is a demand for that service. And that service, whether it's performed by the government or a private entity, will cost something. If the service is privatized, then only those who use the service will pay for it, instead of having the cost being spread across all taxpayers, therefore the cost of said service will, most likely, go up.

So the Republican plan is to cut taxes so that, in the end run, we can all pay more for the same services we used to get from the government.
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HUFFPOST COMMUNITY MODERATOR
iskra
Natural enemy of sharks and tro//s
11:43 AM on 07/11/2011
Any serious discussion of our issues today that removes possible solutions off the table in absolute terms, as Republicans have done, isn't a serious discussion at all. 

Yes, we can and should reduce spending and we should probably raise revenue a bit as well. How can we possibly solve problems without  using all of the tools at hand? The notion that we're broke is just rhetoric, our debt to GDP isn't much different that it has been at other times in the past, all this is is Fear Uncertainty and Doubt (FUD) spread by the Republicans to try and instill fear. 

So the real argument is what we spend on, Repubs would have us believe that middle class and poor are the culprits. Democrats are more confused on the message, as usual. 

Drop defense spending, stop corporate welfare, drop subsidies to agri, oil and other industries and we could save 300 billion a  year without trying. 

Legislate that any state taking more than 90 cents of federal spending for each dollar in taxes paid must present a plan to the nation on how they will turn their state around. 

Increase taxes on the top 1% (which I'm in) back to Clinton levels, close corporate tax loopholes, increase capital gains tax which only benefits the rich, and lower the corporate tax rate (but plug the holes). 

Drop the medicare limit on contributions and social security. 

It's not hard to find ways to fix things without making grandma lose health care and poor children put out on the streets. But that would require open discussions of people looking to find solutions, not just win the next election.
12:30 PM on 07/11/2011
Bless you, the only real solution to the entire mess, All tools used in equal proportion and in the proper areas. Just these short paragraphs solve 99% of fiscal issues this nation faces. Of course the Republicans would scream bloody murder, they do not want the problems solved, for them it is all politics and to keeping the wealthy paying for their votes.
01:03 PM on 07/11/2011
I agree everything should be on the table - that includes medicare, which Ms. Pelosi said is off the table. In fact, nothing can effectively be done without dealing with entitlements. I think you are way off on the debt to GDP ratio - we are at an historic high above 100% comparable to WWII - See gov't chart here: http://www.usgovernmentspending.com/federal_debt_chart.html.

I'm not in the top 1% but earn enough to actually pay taxes (which automatically puts me in the top 50%!). I don't mind paying more but I also don't want to throw good money after bad. We are a train wreck waiting to happen and none of our elected officials give a damn about anything other than getting re-elected.
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HUFFPOST SUPER USER
Russell Masingale
weary I am of the Astroturf.
03:07 PM on 07/11/2011
if you can read. medicare is the second to last line. droping the income tax cap on ss and medicare fixes it in perpetuity.