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Temporary Tax Gimmicks Damage America – We Must have a Budget


Democracy and Power 107:  Counting votes

Successful … politicians are insecure and intimidated men. They advance politically only as they placate, appease, bribe, seduce, bamboozle or otherwise manage to manipulate the demanding and threatening elements in their constituencies.
– Walter Lippmann (1889-1974), American Journalist and Author

In a democracy, the politician must favorably influence the majority of their voting constituents.  In all political decisions, the politician calculates how many votes are gained by voting-money spent on interest groups versus how many votes are lost.

Temporary Tax Gimmicks Damage America – We Must have a Budget

Congress and the President have fled DC.  In their haste to leave the city, they employed a procedural gimmick by agreeing to no motions and no debate.  Hence, the payroll tax-cut has been extended for two months.

Great!   However, the real gimmick is the payroll tax-cut.  It was pure fraud on the American voter, and retards economic grow.  In truth, the payroll debate was a political contest to buy votes.  A game played by the President, Congress, Republicans and Democrats. 

The fraud:  temporary infusion of money to Americans does not stimulate sustainable recoveries. John Taylor of Stanford University writes in the Wall Street Journal:

Like the one-time rebate of 2001, the temporary tax cut of 2008, the cash-for-clunkers and stimulus payments of 2009, or similar policies tried back in the 1970s, these temporary policies consistently fail to stimulate sustainable recoveries. And as this history shows, extending the temporary reduction from two months to six months or even to 12 months would be at best a marginal improvement.

The DC politicians must halt the despicable jousting for political advantage and make vital, long-term decisions.  Again Taylor writes:

But the policies are worse than doing nothing at all. Rather than stimulate the economy, they hold the economy back by creating policy unpredictability and by distracting Washington from crucial long-term reforms that are key to restoring economic growth and creating jobs.

Congress and the President are immoral stewards of fiscal and tax policy.  The Senate has not passed a budget in over two years.  Hence, there is no structure or restraint on spending.  Worse, governmental debt has increased by trillions of dollars.

FreedomWorks and thousands of citizens have presented the Tea Party Budget, which cuts spending by 9 trillion dollars in 10 years.  Now, Congress must pass a budget – their most fundamental and indispensable duty.

America must have a plan to reduce government debt.  The politicians have a moral duty to present and defend their plans.  Without a doubt, FreedomWorks will advocate for the Tea Party Budget.   All Americans must have the opportunity to know and participate in this critical budget debate, which will determine America’s future.

Again, the DC politicians must halt the despicable jousting for political advantage and make vital long-term decisions.



Capitalism is Superman. Uncertainty is like kryptonyte. Politics, which is largely the allocation of resources for reasons other than common sense, is the essence of uncertainty.

I am living proof. Once upon a time I had a productive job where I created other jobs through innovation. That changed when Ben Bernanke paid me (not directly but through implied guarantees) to become a payday loan lender to America's banking system. Today I am probably a net negative component of job growth, as I borrow money to throw at low-productivity investments.

Apols for typos computer on the fritz.

Dave Combs

Has anyone thought of Mark Levin's idea, from his book Liberty and Tyranny, to institute an act of Congress that would sunset every independent federal agency every year? None would continue save for a majority vote of Congress ... and of course, the signature of the president.

I know we here in California desperately need to do this as well as there are over a thousand "independent" agencies that exist for no other reason than to frustrate the function of our state economy. Not only that but "friends" of previous governors and former members of the legislature occupy these offices to the tune of billions - which we are having an increasingly hard time finding these days ... We just need the basics. Amen?

teda's picture
Ted Abram

I believe America must first understand the problem - misuse of the power of government. Polls show we are making progress. Next, the solutions are many. There will be no one solution unless there is a total collapse of legal and civil order. Thus we must pursue every opportunity to limit government. Levin's idea is worth considering, and knowing Mark it should be viable.