Wednesday, December 8, 2010

It's spending, not tax rates, that is the problem

With everyone agog over the recent deal between Obama and the Republicans, most are missing the most important point: A small increase in the highest tax rate don't mean shit.

Sure, the lying liberals say it will cost us $700 billion. But that's just deception. First of all, that's over 10 years, and the deal on tax rates is for 2 years. So we're talking $140 billion (if that's actually the right figure, which I doubt), out of deficit spending of $3,000 billion.

If the Republicans are right and keeping tax rates the same will spur job growth, then the $140 billion will easily be made up in increased revenue. However, extending unemployment benefits will most likely result in higher unemployment anyway. So we're screwed both ways.

Spending is the problem. The only problem. No one should have to pay any more of their hard-earned dollars just because the idiots in Washington can't control themselves.

Note: If you look closely at the chart above, you'll see after the tax cuts in 2001 and 2003, revenue went up. Same thing in the early 1980s. Now try telling me that tax cuts don't result in increased revenue and I'll sell you some swamp land in Arizona.

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