Tea Parties – About Future Taxation, Not Necessarily Present Taxation
Much of the left, Steve Benen serving as a perfect example, are missing an essential point about the tea parties planned around the country. They aren’t about the level of taxation now. Instead, those attending them understand that with the massive spending undertaken by the federal government and the massive amounts of currency pumped into the system by the Federal Reserve, taxes aren’t going to remain anywhere near where they are now, no matter what politicians promise.
Benen uses a recent Gallup poll which says people are mostly happy with the tax rates they now have in an attempt to portray the protesters as being out of touch and out of step with the mainstream:
The latest survey from Gallup shows these assumptions don’t seem to apply right now: “A new Gallup Poll finds 48% of Americans saying the amount of federal income taxes they pay is ‘about right,’ with 46% saying ‘too high’ — one of the most positive assessments Gallup has measured since 1956. Typically, a majority of Americans say their taxes are too high, and relatively few say their taxes are too low.”
The same poll found that 61% of Americans believe the income taxes they paid this year are “fair.”
This certainly isn’t the kind of public opinion landscape Republicans were hoping for. In order for conservative talking points on the economy to be effective, Americans have to believe the current tax rates are never “about right” and anything but “fair.” Broad satisfaction with taxes leaves Republicans with very little else to say.
I beg to differ (and it isn’t just “Republicans” involved in these protests). What it says is the Bush era taxes, the ones which resulted from a tax cut, are considered “fair”. That would mean, then, than any increase in taxes would be considered something other than “fair”. And anyone with enough intelligence to make toast should realize that the spending orgy we’ve seen in the last few months is something that will have to be “paid for” either through taxation or inflation (or both).
So when Benen says the following, he whiffs completely:
Indeed, the semi-official slogan of the Tea Baggers’ events tomorrow is “T.E.A.: Taxed Enough Already.” It was hard enough to make this argument shortly after the president signed the largest middle-class tax cut in history; it’s even harder in light of poll results like these.
“Taxed Enough Already” mirrors the poll. But unlike Bennen, who attempts to pawn off the “95% of Americans will receive tax cuts” nonsense as the reason for the satisfaction, the people showing up seem to understand the economics of the situation better than he does. Someone is going to have to pay for all this fiscal profligacy, and the protesters know exactly who those people are.
Thus the protests.
UPDATE: Benen still doesn’t get it. Referencing this post, he says:
I see. So, at some point in the future (we don’t know when), some politicians (we don’t know who) might find it necessary to raise taxes. Whose taxes would be raised? It’s too soon to say. How much would taxes go up? No one knows.
It helps, if you’re going to write about this stuff, if you keep up with what’s been going on. You don’t have to guess. As we pointed out in another post on the Obama budget, you don’t even have to guess “how much” or whether or not it might be “necessary”, the budget answers those questions:
Against a baseline that assumes current law tax policy is extended, S. Con. Res. 13 raises taxes by $361 billion and allows for $1.3 trillion in additional tax increases. In addition their budget paves the way for additional tax increases from a proposed cap-and-trade tax in reconciliation.
And (making the point as to how the 1.3 trillion is raised):
Deficit Neutral Reserve Funds:
The Democrat budget includes 15 “reserve funds,” which essentially “phantom spending” policy statements that allow the majority to say that they would like to fund a certain initiative. The deficit neutral requirement associated with the reserve funds typically require that taxes be raised in order to pay for the new policy initiative. If all reserve funds were to be fully enacted, total spending would increase by $1.3 trillion, financed by tax increases or spending decreases.
Maybe Benen finds that acceptable, but obviously those protesting don’t.
He concludes with:
With this in mind, I can only conclude that the Tea Parties are the most forward-thinking political events in the history of the country.
Another whiff – all you have to do is read the budget proposal that was passed by Congress, Mr. Benen. It outlines the size and scope of those future taxes fairly specifically.
You have read it haven’t you?