The Democrats’ Alice-in-Wonderland Tax Guide

by Thomas Del Beccaro

If something stays the same, has it been cut?  The answer is a resounding YES in the Alice-in-Wonderland world of Demo-nomics.  Of course, I am speaking of the Democrats’ claims that Republicans are holding middle class tax cuts hostage when the issue really is whether certain tax rates will remain the same or go up.  Such folly is, to be generous, not the only upside down element of Demo-nomics under which we vassals must toil.  Here is your guide to some of the more prevalent illusions . . .

alice-red-queen

1. Extending the current rates = a Tax Cut.   It is not so much a subtle tactic by the Democrats to frame the discussion by claiming that the Republicans are holding middle class tax cuts hostage.  Remember that he who frames the argument often wins the argument.   The literal and basic premise of this Demo-nomics subtlety is that the rates, by all rights, should be higher.  By pedaling their line of argument, however, the status quo becomes change - and it is they who are heroes for cutting them again from where they think ”should” be.

In truth, who is to say tax rates should be this high?  After all, when the income tax was ushered in by Democrat Woodrow Wilson the top rate was only 7%.  Shouldn’t the question be:  Why are we keeping rates so very high?  Obviously not in the world of Demo-nomics.

2.  Tax Cuts Are A “Windfall” for the Rich.   This too is a brilliant job by the Democrats of framing the issue.  According to Merriam-Webster’s online dictionary, “windfall” is defined as “an unexpected, unearned, or sudden gain or advantage.” Incredibly, so pervasive is this canard that one of the examples Websters uses for the word windfall is: “They received a windfall because of the tax cuts.”  Of course, in 99%.9 of the cases, a tax is a government taking of money you have earned and probably not so suddenly but after a year of hard work.  A tax rate cut, therefore, does not result in a gain – what it really represents a smaller loss for you – just not in the world of Demo-nomics.

3. Tax Cuts “Cost” the Government Money.  According to Obama in Wonderland, not extending the tax cuts to the wealthy – read raising taxes – “would knock hundreds of billions of dollars off the cost of extending the cuts.”  This is a favorite tax folly of the Democrats, i.e. that tax cuts COST the government money.  Perilously referencing Merriam-Webster’s online dictionary again, we find that the definition of a “tax” to be: “a charge usually of money imposed by authority on persons or property for public purposes.”   As you can see, the charge that is imposed is imposed ON US and therefore COSTS US – not the government.  If they are charging us less it means that it is costing us less – it does not cost them at all – not to mention that lower rates foster higher economic activity and, therefore, greater revenue.

By now, you have seen the main thrust of Demo-nomics.  By framing the argument the way they do, their basic and not so subtle premise is that the money belongs to the all important STATE and that, if tax rates are lowered, YOU are taking money from the all-important State – never mind that it was once yours.

It is worthy to note that Thomas Paine wrote in Common Sense that: “Some writers have so confounded society with government as to leave little or no distinction between them.”  Of course, politicians make writers seem, well, simply academic on the point.  Under Demo-nomics, Paine’s distinction becomes our pain which is what makes Demo-nomics actually Demon-omics.


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Posted Sep 16th 2010 at 5:51 am in Congress, Economics, Featured Story, Federal Spending, taxes | 98 Comments