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War Tax? Recession Tax is more like it. 2 October, 2007

Posted by David Anderson in federal.
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http://delawareliberal.wordpress.com/2007/10/02/it-is-time-for-a-war-tax/

Over at DelawareLiberal, they are up to a new version of their tax and spend insanity.  They are proposing a 2 to 15% war tax which is an additional income tax surtax.

We are at the end of our 7 year growth cycle.  We are going to have to be skillful to avoid a recession.  Alan Greenspan puts the odds of a recession at better than one in three. Jacking taxes up has never worked in that circumstances.  It would be a repeat of 1990.  If we want more money, cut taxes and grow the economy. 

Who is hurt the most by a recession?  Cyclical workers (many in unions), minorities, poor people, and small business is the answer.  I guess liberals don’t care about any of these people if it makes a point they like.

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Comments»

1. jason330 - 3 October, 2007

Why do you hate the troops?

I guess you figure that running out of bullets in the middle of a fire fight is what they deserve for being stupid enough to sign up for thsi bogus war.

2. David Anderson - 3 October, 2007

I thought you were complaining that we were spending 600b on the war. There is no shortage of money being spent.

The question is do we keep an economy strong enough to afford our expenditures. I will be glad when we bring everyone home. The question is what do we do in the meantime?

3. noman - 4 October, 2007

When the recession comes it will be caused by the deficit, which will create a credit crunch and a drop in consumer spending.

Jacking taxes up has never worked in that circumstances. It would be a repeat of 1990.

That is the ONLY thing that has worked before. I would LOVE to have a repeat of OBRA ’93, which raised taxes slightly and implemented fiscal discipline. Every Republican voted against it predicting recession, but we got a boom instead due to the ensuing deficit reduction.

You can say the economy was already on the upswing when Clinton took office, but then you would have to credit GHWB’s 1990 tax increases.

4. noman - 4 October, 2007

….see, I’m philosophically liberal, but economically I’m a technocrat at heart. In non-partisan economic theory, conditions dictate that sometimes taxes should be raised and sometimes they should be cut.

But Republicans are married to an ideology that says taxes should always be cut at every opportunity and never raised. That is economic folly.

On the other side, Democrats are much more tolerant of tax increases, but do not have a corresponding ideology that says with equal fervor “taxes must always be raised at every opportunity.”

Reagan was correct to point out that Carter-era top tax rates were too high. But Bush had much less of a case to argue that Clinton-era rates were too high.

At least Reagan had the sense to raise taxes after he was warned that his initial round of tax cuts was disastrous. Now that’s leadership.

I can always stump a conservative by asking “Which President implemented the biggest tax increase in history?”

Oh – and the war tax only makes sense. That’s how we financed all our wars, except LBJ attempted to run Vietnam on deficit spending, which led to the Carter-era stagflation.

Either pay for the war, or get out and stop running up our tab.

5. donviti - 4 October, 2007

better than the spend mentality your party has incorporated over the past 6 years


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