Taxes? Through the roof, America!

August 17, 2009

There was a Saturday Night Live skit after the 1988 election called “Dukakis after Dark.” In it, failed veep candidate Lloyd Bentsen asks failed presidential candidate Michael Dukakis, “You were going to raise taxes, weren’t you?” Dukakis, wearing a Hugh Hefneresque smoking jacket, shiftily replies: “Through the roof.”

Lots of Washington politicians could give the same response today. This blog post from TaxVox sums up the common wisdom around here:

Politically feasible tax increases alone won’t solve the problem. Neither will cutting spending. In fact, if history is any guide, we’re unlikely to do much of anything on the outlay side. We will certainly have to slash the growth of healthcare to keep the budget from spiraling totally out of control. But that’s likely to take the form of “bending the cost curve” to get gradual savings over many years. In the near term, I suspect taxes will do the heavy lifting. And that will require either major tax reform or tapping new revenue sources.

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Posted by James Pethokoukis » Blog Archive » Taxes? Through the roof … | Money Blog : 10 Dollars : Money Articles. | Report as abusive

Sad little man James Pethokoukis seems to think Democrats are all tax and spend, while conveniently ignoring the 8 years under the Bush Administration where deficit spending skyrocketed to levels exceeding the Reagan era, and the national debt doubled.

Republicans have managed to trick many americans into believing that tax cuts are equal to spending cuts, when the reality is that it is a “deferred tax” that has to be paid later…..usually when the GOP falls out of favor and the democrats have to play cleanup, and then the tax increases come which are inevitable due to the fiscal irresponsibility of the republicans.

Repeat after me, tax cuts are NOT spending cuts.

Posted by Rick Cain | Report as abusive