Believe me,
I'm in favor of a tax cut... a big one... the bigger the
better.
But if the
Republican Party is banking on a fight with President
Clinton over the size of its proposed tax cut to carry
the day in the 2000 elections, I fear for the future.
Most people
favor a tax cut. I don't need anybody's poll to tell me
that. Taxes eat us alive as we try to take care of the
necessities and have a little left over to enjoy the
fruits of an economy that can crank out some really
interesting and fun quality-of-life enhancers.
But most
people also, wrongly in my opinion, favor a small tax
cut, a gradual tax cut.
The reason
people favor the wrong approach to tax cutting is that
they have bought the media hype, fed by both parties in
Congress and the president, that there is a budget
surplus. They also buy the argument of one particular
party that we should "save Social Security" and
accomplish some other wish-list items before we, the
taxpayers, get to cash in on these supposed good times.
First,
there is no budget surplus. There is a projected surplus based on
current spending levels. If Congress changes hands in
2000, there will never be a surplus, and there's no
absolute guarantee that Republicans won't go crazy and
spend it all either. So we're arguing about how to spend
a fantom windfall that may or may not ever exist.
Second, the
president once again is winning the rhetorical war by
making a statement that is undeniably correct... if you
accept the premise that it's based on. He argues for
"saving Social Security" rather than passing a
tax cut, as if the two were mutually exclusive, and as if
the long-term goal should be "saving" the
program, i.e. putting enough money into it to keep it
going just as it is.
We need to
do away with Social Security, but even if we decide to
keep this obsolete program as it is, we can fund it and
still begin taking realistic steps toward whittling taxes
down to a long-term, sustainable, reasonable level that
doesn't force everyone with a five-figure or less income
to struggle his or her entire life just to render unto
Caesar that which Caesar has no right to require.
If we
reduce taxes, the economy is stimulated so that the
revenue generated by the lower tax rates increases. It
may not increase enough to completely wipe out the
effects of the cut, but the final result is certainly not
a simple subtraction problem.
And if
there is indeed a reduction in revenue from the tax cut,
that's even better because at that point maybe the
politicians won't occupy all their waking hours looking
for ways to "spend" the surplus.
And if you
think having a Republican Congress will keep that from
happening, think again. Republicans have to get reelected
just as Democrats do, and part of getting reelected is to
keep the money flowing to the district.
Now I've
spent most of this column arguing for a big tax cut, and
I said at the top that Republicans shouldn't put too many
eggs in that basket. Here's what I would propose, if
anybody asked me.
Go ahead
and cut back on the tax cut. You're not going to get a
big one past the president anyway, and after he vetoes it
and you come back with a smaller one that he'll accept,
he'll use the situation to crow about having saved Social
Security from those crazy Republicans and their
"risky" tax cut plan.
Get the tax
cut in place, and then get serious about a balanced
budget amendment. Push harder than you've every pushed
for it. Explain through the press, and through
advertising if you can't get the press's attention, that
the only way to protect the American people from the
natural effects of political back-scratching (you scratch
mine, I'll scratch yours) is to make deficit spending
illegal.
And make
Social Security reform - not "saving"
business as usual - the number one issue in 2000.
Retired people who are living on Social Security have
been robbed, pure and simple, and today's work force is
being robbed too. That case would be so easy to make that
even GOP speech writers should be able to figure it out.
Another
suggestion: Citizens Against Government Waste, a
nonpartisan group that spends all its time studying the
federal budget to find the fat, has identified a bunch of
useless, obsolete programs and says that if they were
cut, we would save $1.2 trillion over five years. Check
it out at www.cagw.org, or call 1-800-BE ANGRY.
Republicans
should thoroughly study CAGW's suggestions - they
don't have to accept them all, but identify a few hundred
billion worth that they can reasonably stand behind
- and introduce bill after bill after bill getting
rid of those programs. Then when the president vetoes all
of them, there will be plenty of issues to run on in
2000.
There's
plenty more that can be done if the thinkers in the GOP
will broaden their horizons a little. If that doesn't
happen, we'll see a repeat of `98.
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