Friday, August 3, 2012

Words do make a difference. Everyone seems to be for cutting taxes even though they are at the lowest level since 1929 as measured as a percentage of GDP. The "experts" and the media have fallen into the "starve the government's" trap. We need to change the dialogue. We need to start talking about cutting tax expenditures, aka, loopholes, subsidies, etc. What is the justification for taxing income from investment at a lower level than taxing income from labor? Why has the income of the middle class remained stagnant or declined while productivity has significantly increased? A large part of the reason is the plethora of tax expenditures that benefit the very wealthy.

We need to change the discussion to focus on what is really important and away from the failed tax policies of Bush/Cheney that "deficits don't matter." and that by starving government of revenue the economy will grow. We need to simplify the tax code by cutting tax expenditures, stop tax policies that encourage multinational companies from exporting jobs and profits and raise enough revenue to  fund a government that will meet our needs. That can only be done if the voters understand what is really at stake. Of course, those who advocate reform don't have the enormous sums of money for misleading advertising that permeate the airwaves now. But it must be done if we are to remain a prosperous country.

No comments:

Post a Comment