The arguments over how much money tax cuts will “cost” are more confounding than informative. For example, the Bush people say his proposal will “cost” the Treasury about $1.6 trillion dollars, while Democrat critics claim the “cost” will actually be closer to $2.6 trillion, including $400 billion in interest on the national debt.
Now, along comes a study published by The Heritage Foundation that says the loss of revenues will amount to only $939 billion. The authors of the study, D. Mark Wilson and William W. Beach, contend that their “dynamic” model yields a much more accurate result than does a “static” analysis.
Their dynamic model recognizes that cutting taxes can increase revenues by impacting consumer confidence, business spending, interest rates, incomes and savings. By contrast, the static model used by Democrats is like that of the unimaginative financial officer of a big company whose calculator says that if you reduce the price of a product, you reduce revenues. His static analysis does not deal with the prospect of higher profits based on an increase in the volume of sales.
One can get lost in the ambiguities and devilish details. Taxes are not just about money. Every tax represents a transfer of power and freedom from the people to the government. The underlying premise of every tax is that the money will do more good in the hands of government than in the hands of the people who earned it.
The opposition of Democrats to tax cuts has little to do with economics and a great deal to do with their ideology and philosophy. Liberals believe human existence is an accident which happened in a universe created by an uncaused explosion. We are all victims of fate, heredity, the environment and societal forces.
This is why liberals avoid words like “willpower” and “self-responsibility” and “merit” and “sin.” This is why they support welfare for able-bodied people, oppose the death penalty, hold no one accountable after a race riot and scorn moral discernment.
As they see it, people may claim no credit for their good fortune, nor should they bear any blame for their misfortune. They see differences in wealth, talent, achievement and intelligence as not only unfair but divisive. They apparently believe that God, if He exists, does not know what He is doing. He made this mess, and it is the job of the government to fix it.
It is folly to put people with these loony ideas in charge of our lives and our destinies. And it is degrading to meekly submit to the torture they put us through as they wrest away our fortunes and our freedoms to fund and enable their hubristic, utopian delusions.
The tax system in America is a system of tyranny. The 16th Amendment to the Constitution authorizing a tax on incomes was a horrendous mistake. It has degenerated into a despised and noxious instrument of government abuse, meddling, manipulation and favor-mongering. It is a gargantuan, constitution-busting, bureaucratic monstrosity, beyond repair or redemption.
The Internal Revenue Service is closer to the Nazi Gestapo than most of us have the courage to admit. The use of intimidation and threats to evoke stark fear in the populace is a deliberate strategy. In cases of disagreement, guilt is assumed, and self-incrimination is a requirement. Many terrorized citizens pay money they do not owe to avoid the stress of prolonged bureaucratic harassment.
The internal revenue code is a hodgepodge of self-contradicting, Machiavellian, and calculatedly incomprehensible rules and regulations. The administration of this network of nonsense requires huge armies of government employees, chosen for their innate indifference to other people, and rigorously trained to work at cross purposes with the millions of befuddled and frightened taxpayers who labor and suffer in what is left of the private sector.
The public toleration of this infernal revenue system is a sign of spiritual and intellectual decay. It is not healthy or desirable for a free people, such as Americans are supposed to be, to jump through hoops on command, grovel for favors, submit to involuntary servitude, and cower in the face of personal assaults on their privacy, their wealth and their common sense.
Our system of taxation must be replaced by a national sales tax. It is the least oppressive, least obnoxious, most visible, most economical and most objectively fair way to collect taxes. Such an approach has its own problems, but they pale when compared to those we now suffer.