The Treasury Department this week announced that tax revenues for the quarter are going to be $54 Billion higher than originally projected.
How can this be? I thought that this was the worst economy since the Great Depression. I thought that George Bush’s tax cuts were bankrupting the nation. I thought that our beloved Democrats told us that to re-elect President Bush would doom the nation. We would all be out on the street begging for a crust of bread from the few rich Republicans that were the only beneficiaries of these horrible, “unwarranted,” “ill-conceived,” “badly timed,” “dangerous, “disastrous,” “tax cuts for the rich.”
Where are all the soup kitchens?
Can it be that Terry McCauliffe, John Edwards, and John Kerry were wrong? Can it be that they were intentionally wrong? Can it be that the Democrats were trying to scare the American people into voting for the lugubrious Mr. John “The Gigolo” Kerry-Heinz?
Nooo! I can’t believe that the Democrats would try to deceive the voters. Why, next you’ll be saying that the Democrats weren’t telling the truth about Social Security, or the war in Iraq, or about Medicare. That’s impossible . . . isn’t it? They would never do something like that. That would be like saying that Bill Clinton and Hillary were not truthful with the American people about . . . say . . . ANYTHING!
The fact of the matter is that history has shown time and time again, if you cut federal taxes, revenues rise. This has happened every single time that taxes have been cut. It was the result of Harding’s “Return to Normalcy” in 1921, it continued through Coolidge’s Presidency. President Kennedy’s tax cut again resulted in increased revenues for federal coffers as did Ronald Reagan tax cuts. SURPRISE! It has happened again with President Bush’s tax cuts.
Folks, we are in the midst of a very robust economy. The Clinton recession, thanks to President Bush’s quick action in reducing the tax burden on the American economy, has been one of the shallowest, shortest lived recessions in the history of the nation, in spite of the fact that the American economy took a $ Trillion hit on 9/11.
Here are a couple of quotes from the DNC’s webpage:
“Bush's Deficit Plan: False Plan to Cut Deficit in Half in Five Years”
“Deficit Will Exceed $400 Billion Every Year For Next Ten Years: The deficit will exceed $400 billion every year through 2014. [Congressional Budget Office, 1/26/04; Center on Budget & Policy Priorities, 1/21/04]”
"The fear is... Interest rates will shoot up...Heavily indebted Americans will not be able to keep up with rising interest payments. Inflation, bankruptcies and economic malaise will follow." [Washington Post, 1/26/04]”Absolutely none of those dire predictions have come true.
The truth: this year’s projected deficit is $365-375 billion—way too much certainly— but well below what the Democrats were promising would happen if George Bush was re-elected.
This economic recovery and reduction of the deficit has occurred in spite of the terrorist attack on 9/11/01, the war in Afganistan, the war in Iraq, and the introduction of the outrageous Medicare drug benefit. Far from doing what the Democrats hyperventilated about:
Tax Cuts Will Cause 35% Of Projected Deficit -- Greater Impact Than Spending Increases: 35 percent of the fiscal decline over the next ten years is due to Bush's three tax cuts, combined with likely changes to the tax code proposed by Bush. Only 28 percent of the deterioration is due to spending legislation, with about two-thirds of that increased spending representing increased costs for defense, homeland security, and the war on terrorism. [Center on Budget and Policy Priorities, 10/27/03, 1/28/04]The tax cuts are having exactly the effect that President Bush said they would and that those of us who look at the history of the American economy rather than living in the fantasy world of the Democrat Party expected.
So why is it that some in America still believe what the Democrats tell them? They have been proven wrong time and time again. I can only assume it is because they are willfully ignorant, choosing party loyalty and to believe what their Congressmen tell them over informing themselves. It’s either that or they’re just plain stupid.
Does it surprise you that-after all of the haranguing, all of the whining, all of the fear mongering of the left, the dire predictions of economic disaster looming ahead of a Bush victory-the economy is in great shape? If it does, you haven’t been paying attention.
The Democrat Party is a bankrupt party. They have no ideas, nothing to offer except the stale, old, failed, socialist ideals of a party frozen in the 1930’s. To the Democrats:
- big business is bad, big labor is good
- capitalism is bad, socialism is good
- private property is bad, redistribution of wealth is good
- Prayer should be outlawed on public occasions, and any display of faith in God is to be despised. Even displays of great historic significance are not to be tolerated. A cross on a municipal flag is intolerable even if it has been on the flag for centuries.
So now the Democrats have a new dilemma, how to be at least partially relevant for the next election. Right now, they’re like a broken record:
- John Bolton’s nomination-against it
- Social security reform-against it
- Inheritance tax cut-against it
- War in Iraq-against it
- Vouchers for school students-against it
- Patriot act-against it
- No child left behind-against it
- Medicare drug bill-against it
- Elimination of the marriage penalty-against it
- Nomination of Terrence W, Boyle (4th Circuit)-against it
- Nomination of Priscilla Richman Owen (5th Circuit)-against it
- Nomination of David W, McKeague (6th Circuit)-against it
- Nomination of Susan Bieke Neilson (6th Circuit)-against it
- Nomination of Henry W. Saad (6th Circuit)-against it
- Nomination of Richard A. Griffin (6th Circuit)-against it
- Nomination of William H. Pryor (11th Circuit)-against it
- Nomination of William Gerry Myers III (9th Circuit)-against it
- Nomination of Janice Rogers Brown (D.C. Circuit)-against it
- Nomination of Brett M. Kavanaugh (D.C. Circuit)-against it
- Nomination of William James Haynes II (4th Circuit)-against it
- Nomination of Thomas B. Griffith (D.C. Circuit)-against it
- Against it
- Against it
I don't know what they have to say,
It makes no difference anyway-
Whatever it is I'm against it!
No matter what it is or who commenced it,
I’m against it!
Your proposition may be good,
But let’s have one thing understood-
Whatever it is I’m against it!
And even when you’ve changed it or condensed it,
I’m against it!
For months before my son was born,
I used to yell from night to morn-
“Whatever it is, I’m against it!”
And I’ve kept yelling since I first commenced it,
“I’m against it!”
Okay, enough Democrat bashing; it’s just too easy.
Does this unexpected windfall mean we are out of the woods as far as the deficit is concerned? Not even close, but what it does mean is that if the Congress exercises a modicum of restraint (I know, I have yet to see that too), we could see the deficit begin to decline fairly rapidly over the next four years.
Therein lays the problem. Republicans have proven themselves just as resistant to spending restraint as the Democrats have always been. This is one place in which I find myself in agreement with John McCain. Congress has got to reign in its pork-barrel spending and they need to stop spending like drunken sailors.
As much as I get nervous about giving any future Democrat President such power, the line item veto would help a great deal in controlling Congress’ proclivity to spend America into destitution.
America has a long way to go to balance the budget, but one thing is certain, the tax cuts, which will too soon begin to sunset, need to be made permanent. It is always better for money to be in the hands of the private economy than it is in the hands of our government.
Let’s hope that our congressmen have the backbone and foresight to make the necessary changes to our tax code. I’m talking, of course, of Republican congressmen. The Democrats are too busy marching lock-step to the hypnotic piping of Nancy Pelosi and Harry Reid to be reasoned in their evaluation of the facts. For the Democrat Party, wresting control of the House and Senate are far more important matters than anything as mundane as helping the American people.
For Democrats, the people are just votes to be wooed or swayed by bribery (middle-class welfare) or deception and fear mongering (Republicans will take away your social security).
As for raising taxes as the Democrats wish, to paraphrase Groucho
The Democrats, they have no wit,
And saying that I must admit,
If it’s a tax, I’m against it!
And when they’ve newly written and re-tensed it,
I’M AGAINST IT!
Long Live Our American Republic!!!
Copyright 2005 Will Malven