Monday, August 23, 2010
Paul Krugman vs BushTaxCutZilla
Today, in his never ending battle against the multi-headed hydra of Republican Hypocrisy, Dr. Krugman goes after the tax cut head. This one should be a no-brainer, it is easy to explain and 69% of the country wants at least the top level tax cuts to expire. There is, however, an Ethiopian in the fuel supply. All the members of the Senate and a goodly number in the House fall into that bracket and are most likely to appreciate if all the tax cuts are extended.
How can this kind of giveaway be justified at a time when politicians claim to care about budget deficits? Well, history is repeating itself. The original campaign for the Bush tax cuts relied on deception and dishonesty. In fact, my first suspicions that we were being misled into invading Iraq were based on the resemblance between the campaign for war and the campaign for tax cuts the previous year. And sure enough, that same trademark deception and dishonesty is being deployed on behalf of tax cuts for the wealthiest Americans.The enemy falls easily but like the original hydra, when you cut off one head another grows back. And there is the menace of the enemy within. This fight, which looks the easiest, may well be the hardest to win.
So, for example, we’re told that it’s all about helping small business; but only a tiny fraction of small-business owners would receive any tax break at all. And how many small-business owners do you know making several million a year?
Or we’re told that it’s about helping the economy recover. But it’s hard to think of a less cost-effective way to help the economy than giving money to people who already have plenty, and aren’t likely to spend a windfall.
No, this has nothing to do with sound economic policy. Instead, as I said, it’s about a dysfunctional and corrupt political culture, in which Congress won’t take action to revive the economy, pleads poverty when it comes to protecting the jobs of schoolteachers and firefighters, but declares cost no object when it comes to sparing the already wealthy even the slightest financial inconvenience.
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