Tax Guru-Ker$tetter Letter
Monday, August 26, 2002
Attacking Tax Cuts
It's been amazing, but no surprise, to see & hear all of the liberals blame the Bush tax cut for the demise of the great Federal budget surpluses that the Clintons supposedly gave us. As always, the media continue to parrot the party line of "irresponsible tax cuts for the evil rich" that their Fellow Travelers espouse. Of course, the only solution is to repeal the tax cut.
As Bruce Bartlett discusses, this entire argument is wrong on so many levels as to not warrant any serious consideration by those of us in the real world.
The effects of the Bush tax cut haven't even been felt yet because the entire law was skewed to the back end, with the real cuts not taking effect for up to ten years away.
As I have explained on too many occasions, there never was a real Federal budget surplus. It was a complete fabrication by our rulers in DC. Contrary to the impression that they try to give of being able to predict future finances for the government, that is a completely impossible task. It can't be done and is just a matter of making up numbers. Even the supposedly non-partisan Congressional Budget Office (CBO) does nothing more than guess. Any publicly traded corporation that used the same kind of financial forecasts would have its officers in prison.
Tax cuts are despised by our rulers for one very important reason. They reduce the power of the rulers to control how money is spent. Money is power and the more that private individuals are allowed to keep is less power for our megalomaniac rulers.