Posted by: James Atticus Bowden | December 8, 2010

Paying for Tax Cuts

I saw some Democrat/Socialist/Progressive/Liberal member of Congress say, “Blah, blah, middle class pay for the tax cuts for the rich, blah, blah.”  It took awhile for me to recover from my gag reflex.

The sum of this genius economics, the world according to Paul Krugman and assorted other fools, is captured in this cartoon.

Yes, Wimpy economics.  I’ll pay you tomorrow for something – essentially free – today.

So, let’s review who pays for tax cuts – really.

Freddy Fat Cat makes $1 million a year.  John Q. Smith makes $100k a year.  Molly Pitcher makes $30k a year.

Freddy is married with 5 kids and takes care of his elderly parents – and pays $280k in Federal taxes.

Jack is married with 2 kids – and pays $23k in Federal taxes.

Sally is a single Mom with 3 kids – and pays no taxes.  She gets a tax credit – money – from the Federal government – let’s say $6k.

The sum of the taxes (representing all tax payers) is $280k + $23k – $6 = $297k in revenue.  The Federal Goverment spends $400k (metaphorically).  The deficit is $103k.

The lapse of the Bush tax cuts would raise taxes.  Obama isn’t cutting taxes.  His political deal prevents taxes from going UP.

If the taxes went up on only “the rich”, Freddy would pay $350k, Jack would pay $23k, and Molly would get $6k.  The Feds would still spend $400k.

If the Obama compromise carries the day, Freddy pays $280k, Jack pays $23k and Molly gets $6k.  The money was earned by Freddy and Jack – and minus the $6k by Molly.  None of it belonged to the Government.

People keeping their own money doesn’t require anyone to pay them anything.  Nor the Federal Government.  It’s their (your) money.  Not the government’s.

The deficit remains about $103k.

No one PAID for the tax cuts.  Nobody.  Ever.

In fact, if the taxes go up, unemployment goes up – then tax revenue goes down, the deficit increases.

No poor person, no middle class person – no one – pays for a tax cut.  Ever.

If a journalist or media person understood their Constitutional duty to operate a free press, they would stop any Democrat whenever they mouth such complete, utter, vapid, stupid, ignorant, dangerous, damaging bovine scatology.

Hope you throw the penalty flag and blow the whistle the next time someone speaks about paying for tax cuts.

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