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Tuesday, November 20, 2007
Paul  Weyrich :: Townhall.com Columnist
The Middle Class Revolt Against Taxes Continues
by Paul Weyrich
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I would not be surprised if you have heard at least five times in different media that the tax revolt in this country is over. In fact, in the past twenty years this is at least the tenth burial of the tax revolt. But I have news for the liberals and the media who promotes their agenda: it simply is not true. The only problem is that the conservatives have not caught on to what is happening.

The fact is that state and local governments have been raising taxes with a vengeance. Voters do not distinguish who is raising their taxes. Thus, if conservatives would tell voters that when liberals in Congress are raising their taxes they will believe it because of what is happening at the local level.

Take the Alternative Minimum Tax (AMT), a bill passed by the House of Representatives, which will affect millions. The problem is that the Democrats in Congress will represent the bill as a tax cut. It is not. The Internal Revenue Service already has printed its tax bill which you will receive the first of the year.

Most of the Republican Presidential candidates have signed the Americans for Tax Reform No Tax Increase Pledge. They would not be doing so if this were not a potent issue. After all, these candidates are polling and polling. They know how to identify a hot topic. The Democrats know as well but MoveOn.org and similar organizations will not permit them to take that position. They would not be able to pay for the billions of dollars for new programs. The problem for them is precisely this: as taxes are cut more revenue comes to the Treasury. When taxes are raised less revenue results.

Speaking of elections, the liberal candidate for Mayor of Indianapolis had all the endorsements. He was the odds-on favorite. In fact, scarcely anyone knew his opponent's name. There was just one issue. The incumbent had raised taxes. The challenger made that his issue. He pounded away with it. The shocker is that the challenger won by a margin of 53% to 47%. The challenger was wholly underfunded yet the liberals and the media claim that taxes no longer are an issue.

Some Members of Congress, such as the Member from the district in which I grew up, Representative Paul Ryan (R-WI), understand that the economic situation affects the middle class. He knows much of the middle class is in serious condition. He understands their anxiety.

What would help them would be a real middle-class tax cut. Moreover, making the George W. Bush tax cuts permanent would also help the middle class after 2010 and beyond.

The next time a liberal or someone in the media tries to tell you that taxes are no longer an issue send that person to Indianapolis or have him or her speak with one of the Republican Presidential candidates. Or talk yourself with middle-class families. The tax revolt continues.

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About The Author

Paul M. Weyrich is the late Chairman and CEO of the Free Congress Research and Education Foundation.
 
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JefferyP

Jeez, looking back, I'm struck by how weak your last post was. Basically, you stuck your fingers in your ears and said "la la la."

Can't you find ANYTHING to back up your assertion that reducing tax rates causes increased revenue? Anything at all?

.

JefferyP wrote:

"Clinton never raised taxes and Kennedy, Reagan and Bush never cut taxes. Only Congress can raise taxes or cut taxes."

Semantics. As everyone knows, the budget process begins in the executive branch which provides the starting point from which Congress works. Congress makes changes to the President's budget, then sends it back for a signature.

Are you going to dispute this, and continue to claim that the Democratic Congress was responsible for cutting taxes in the 1980s? If so, it follows that Reagan deserves no credit for the economic recovery of the 1980s - right?

"Clinton left office with a shrinking economy."

Not according to NBER, the official designator of business cycles, which says that real GDP grew in every quarter of 2000, as well as 1Q2001, when Clinton left office.

"Bush took office during a slight downturn and the 9/11 attacks caused a an indisputable economic downturn."

According to NBER, we had two quarters of negative GDP growth, making 2001 the mildest recession of the post-WWII period. Note that for the entire year of 2001, real GDP grew. In other words, the effects of the recession were so minor that they didn't make a single calendar year's real GDP growth negative.

"We have had four major income tax cuts in this country. Afterwards, revenues have increased. That is a fact. Cause and effect are arguable."

Following the Reagan and Bush II tax cuts, tax revenue declined dramatically, and remained below pre-cut levels for 5 and 6 years. When revenue finally re-reached the previous levels, it was due to significant, but not accelerated, growth in GDP.

Next, you'll say that the tax cut CAUSED GDP to rise faster, thereby increasing tax revenue. But there are no data that support this supposition. Please look into Greg Mankiw's study of "dynamic scoring" to find his conclusions regarding the "tax cuts pay for themselves" canard.

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