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Tuesday, December 11, 2012

A note on the Bush tax cuts

Now that the idea of returning taxes to the levels they were before the much-decried-by-liberal-media Bush tax cuts, we find out that liberals actually support them (at least in word, I'll believe it when and if I see it). Let's examine why.

  • Americans take home less (10% less if I remember correctly) than they did a few years ago.
  • Americans have higher costs of living than they did a few years ago.  Thanks to Obama's energy plan and regulatory burdens just about everywhere.
  • Fewer Americans are working than there were a four years ago. We're down to less than 59% in absolutes.
  • Fewer Americans can find jobs out of college.
These facts add up to two conclusions. One, that with fewer people working and working for less, returning to the pre-Bush tax rates isn't going to haul in as much money to the government as it did before. Two, that people in the "middle class" are going to be substantially squeezed to pay higher taxes in a time with higher cost of living and less pay - driving them to government programs and thus increasing the welfare burden, already increased dramatically in the past four years. This is not going to be a pleasant for anyone disconnected from government.

Once again, government budget cuts are the only answer for getting us out of this fiscal mess in the long term. I see very few politicians willing to admit as much. Even fewer voices in the liberal media.

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