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May 30, 2012

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I will not support any tax increases until the enormous, flabbergasting inefficiency and waste of government spending is curtailed. Once that is accomplished then we can talk about tax increases.

tucson, problem is, a big part of government waste are special interest tax giveaways -- especially to large corporations, but also to wealthy individuals. "Tax expenditures" are just as wasteful as unnecessary direct government spending. So this is why wise tax increases are just as necessary as wise decreases in spending.

"So this is why wise tax increases are just as necessary as wise decreases in spending."

--OK, but I want to see the wise decreases in spending and an end to corporate subsidies and giveaways first. Otherwise the taxes will just be absorbed by the black hole of waste and special interests like they always are and they will be for naught. The government needs to earn my business.

"I want to see the wise decreases in spending and an end to corporate subsidies and giveaways first"

And I want to see the balance restored to the revenue side first because I have zero truxt in the right (how's the budget compromise automatic reduction agreement working out?). So, instead of playing brinksmanship and insisting on absolute positions, let's compromise and do both. That's the Simpson-Bowles approach which is tough medicine for both sides.

Tucson is correct again.

Ritz wants to see “balance restored on the revenue side first.” You’ve got it all backwards…you’re essentially saying that if Washington fixes the revenue molehill, you’ll then be willing to trust they’ll fix the mountain (of spending) too. Reality is, the revenue side is so close to “balance” already that it can be entirely restored (and then some) not by tax rate increases but by an uptick in economic activity alone.

DO THE MATH:

Federal Revenue peaked in 2007 at $2.568T. Federal Outlays that year were $2.729T, creating a deficit of just $0.16T.

2012 Federal Revenue is on track to be $2.469T (just 4% below the 2007 figure). 2012 Federal Outlays are expected to be $3.796T (39% above 2007).

So – relative to the peak revenue year 2007 – the binge-worthy $1.327T estimated 2012 deficit is comprised of a revenue shortfall of just $0.099T and a spending binge increase of $1.228T.

http://www.taxpolicycenter.org/taxfacts/displayafact.cfm?Docid=200

In other words, Ritz, to “restore balance” what’s really needed is an 8% increase in tax revenue (not RATES… REVENUE!) and a 92% decrease in binge spending.

Republicans get accused of not wanting to compromise…but the math explains why they’re correct to say we don’t have a revenue problem we have a spending problem. Dollar for dollar tax increases and spending cuts (the standard Democratic ‘reasonable compromise’) don’t create balance – they maintain the current imbalance.

Sincerely,
Big Oil

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