I want to begin this week by reciting a couple of quotes about taxation…
Cutting taxes now is not to incur a budget deficit, but to achieve the more
prosperous, expanding economy which can bring a budget surplus.
“Lower rates of taxation will stimulate economic activity and so raise the
levels of personal and corporate income as to yield within a few years an
increased – not a reduced – flow of revenues to the federal government.
Who do you think said those words…Ronald Reagan, when talking about supply side economics? Maybe George W. Bush when pitching his tax cuts…or was it the late conservative icon William F. Buckley…perhaps even…. Rush Limbaugh?
No… those words advocating cutting taxes to increase revenues were said nearly 50 years ago by the patron saint of the Democratic party, John F.
Kennedy…JFK’s beliefs and economic policies seem totally right wing in today’s spend and spend and tax and tax mentality that prevails in Washington.
Pretty simply math, really…if more people have more money, they spend more, businesses do better, they build more, they expand, they hire more people and all of those new businesses and employees collectively pay taxes to the government.
This week, President Obama is out of the campaign trail, which he does so very well, this time pitching his new economic plan to stimulate the economy…an economy which has seen about 2 trillion dollars thrown at it in stimulus spending and commitment to health care legislation…stimulus spending that most Americans can’t point to and health care legislation that most Americans didn’t want.
The administration once touted that the stimulus bill saved or created 2 million jobs, all the while unemployment kept going up and those two million jobs…supposedly saved or created…had a price tag of about $400,000 each.
This week, Obama borrowed from FDR when he should have borrowed from JFK. The WPA or Works Progress Administration was envisoned and implemented by FDR to put out of work Americans on the job again, building roads and public buildings. $7 billion was spent over three years doing just that.
This week, Obama proposed spending $50 billion on roads and infrastructure work in an effort to put people to work, but most economists, even those at ultra-liberal CNN, dismissed the proposal as too little, too late and very unlikely to pass Congress before the mid term elections in November.
Obama knows his majority on Capitol Hill is in serious trouble, if he loses
control of the House or the Senate…or perhaps both, the remaining two years in his administration would enter lame duck status. With no majority to fall back on to vote yes on his every whim and proposal, he would be left alone to
shoulder the storm of the economy…and voters almost always vote with their
wallets when it comes to choosing an American president.
Instead of cutting taxes across the board, as JFK would do, Obama wants to
increase spending yet again and then cherry pick who might get a tax break and who won’t. January 1st of 2011, will mark the beginning of the largest tax
increase in the history of our nation.
Americans are fed up, the administration is losing support from all sides, even the liberal media and the loss of support means the loss of votes.
For many, November 2nd cannot get here soon enough.