Sooner or later the Republicans in Congress will rollover and give Obama his tax hikes. When polls say 57% of Americans want taxes raised on “the rich”, the Establishment Republicans go wobbly. When polls say 57% of Americans don’t want Obamacare, the Democrats don’t give an inch.
Here is Virginia Governor’s Bob McDonnell’s excuse for tax hikes for the wealthy, “As a piece of an overall package with tax reform that is more comprehensive, I think it’s something that absolutely has got to be discussed. We’re in deep, deep trouble in America right now and I think with the president in power there’s no way to get a budget solution that’s spending cuts only.”
And here is Virginia 1 CD Congressman Rob Wittman’s excuse, “I will continue to work hard to rein in our government’s debt and facilitate an environment where businesses can innovate, expand, and hire people. At the same time, tax reform is a necessary part of any solution as well, providing economic growth and broadening the revenue base without increasing taxes on our job-creating small businesses.”
Pretend the Establishment Republicans compromise their ‘no taxes’ pledge and the principles of the Virginia Republican Creed by raising taxes only on persons earning $1million a year in wages. Just those evil really rich guys. Pretend it’s only the sports stars, Hollywood stars and CEOs making over $10 million a year. They’ve compromised a principle. They’ve engaged in class warfare. They forfeit the moral authority to argue against tax increases in the future.
It gets better. Assume the Establishment Republicans rollover to give Barry the full $1.6 trillion in taxes. That may look like it balances the books. Except taking capital out of the economy kills jobs. Even if it is from the evil rich. Even if they won’t feel it. Killing the capital in taxes kills jobs. Killing jobs lowers tax revenue. Killing jobs raises government spending on welfare and Medicaid, etc. And, voila, the descent into more deficits and deeper socialist circles of Hell continues.
Thank you, Establishment Republicans.
The more the Establishment carves out in immediate spending cuts and less it takes in taxes – from whatever creative “broadening the revenue base” they rob – the better for the economy. Wish them well in making the best of their cave in.
Tax cuts and spending cuts could create $6 trillion in capital and 12 million jobs in 4 years. But, alas, Romney and Ryan lost. That $6 trillion would produce over a $1 trillion in additional taxes. The budget would balance. And, with entitlement reform, the deficit could start coming down – paid in real cash.
Note to Tea Party: If you want to primary Establishment Republicans, you should pick your single strongest candidate by July 4th 2013.