Tax Guru – Ker$tetter Letter

Tax Cuts Don’t Cause Deficits

I have expounded ad nauseam on how the liberals persist in mis-characterizing actual historical events by blaming the huge federal budget deficits of the 1980s and 1990s on the Reagan tax rate cuts. Some are even so blatant as to blame the current deficit on the tiny little rebate checks that were sent out. As the debate over making the tax rate cuts permanent, and hopefully even accelerating them, becomes more serious, we will be exposed to more of these lies. These two articles, by Larry Kudlow and by Victor Canto, are good at explaining that deficits are more a function of the overall economy than tax rate cuts.

It’s always been a puzzler that liberals are always so opposed to tax rate cuts, when they actually result in much more money for the Imperial Federal Government, which they can then spend as their hearts desire. While I haven’t heard any liberal actually address this inconsistency (mainly because they persist in pretending that tax rate cuts don’t result in more revenue), my theory is one of power. If they can snatch 70% of everyone’s paycheck, they have much more power over the lives of us commoners than if they were only able to grab 28%. The fact that people will work less hard as a result is simply immaterial to the mind of a power-mad liberal. It really isn’t much different than classic communism, where all money and wealth belong to the central government and the elite rulers decide how much to allow the little people to have.

KMK