Friday, February 18, 2011
Spending cuts are the fiscal equivalent of tax increases
When discussing fiscal matters it's all about revenue and spending.
Most people are against tax increases. Why? Simple, because tax increases take money away from you.
Spending cuts, on the other hand, are generally viewed in a more constructive light. Yet the funny thing is, spending cuts do exactly the same thing as tax increases: they take money away from people. So why do people love spending cuts? The same people who are opposed to taxes increases cry out for spending cuts even though both things are fiscally equivalent.
Here'a another thing that's the fiscal equivalent of a tax hike: taking away someone's benefits. When you take away someone's benefits (Social Security, Medicare, Medicaid, tuition subsidies, collective bargaining rights, annual wage increases, etc.), it's the exact same thing as levying a tax on them. It's a tax increase, pure and simple.
That's why it's so disturbing to watch the protests going on in Wisconsin and see the reaction to them. The public employees (teachers, firemen, police, etc) in Wisconsin are simply protesting against a tax increase that is about to be levied on them. This tax increase comes even as the wealthy in that state got another tax cut!
And while these protests are occurring you have this bizarre sight of private sector workers disparaging public sector workers and screaming about how they are ripping off the states and taxpayers, when in fact all workers are being hit with tax increases in thinly disguised form while the wealthy get tax cuts!
This is playing out throughout the land at both the state and Federal level. We see policies being implemented to reduce pay, benefits and services (which is the equivalent of a tax increase) while the wealthy get more money funneled their way! Even Obama's so-called tax compromise back in December did just that--it cut taxes for the wealthy while imposing a wage freeze (otherwise known as a tax hike) on Federal workers.
The really frightenting thing about this is how this whole argument is being framed in such a clever and deceptive way as to make ordinary workers look like the fat, lazy, greedy, bad guys.
This argument needs to be re-framed. People all across America need to realize that what we're seeing now on pretty much a wholesale level is that middle class workers are being taxed while the rich continue to get more and more tax breaks. All happening under a presidnet who was purportedly for the workers.
Taxation without representation!
Our forefathers started a revolution over this.