You knew it was coming. We heard it all through the election about the $700 billion cost of extending the current tax rates that are due to expire on January 1, 2011. The progressives call it a cost because they believe that everything you make belongs to the government except what the government allows you to keep. So if they allow you to keep more of what you earn, they have to find the money to pay for it. Pay for what?
If I go into your place of business where you were expecting me to buy $100 worth of goods or services from you and instead I only buy $90, do you have to go find the money to give me the $10 difference? Of course not. But if you already spent the extra ten dollars on a party to celebrate what a great year you had, yes, you have a problem. And the problem is that you have already spent what you don’t have and the thing you need to do is cancel the party, freeze salaries, and do what every smart businessperson does when sales fall short of expectations. But the statists don’t see it that way. They keep trying to tell us keeping the tax rates exactly where they are will cost us $700 billion.
Most people know that with the economy as weak as it is, raising taxes on anyone now is a bad idea. But that doesn’t stop the administration from trying to propagate the “cost” myth. Here is their pitch to tell us up is down and in is out. Revenues are costs and costs are revenue. Fortunately, our friends at the Cato Institute, have interlaced some truth into the snake oil sales pitch.
httpv://www.youtube.com/watch?v=Nri1yH16168
The new Republican controlled House of Representatives intends to leave taxes exactly where they are. This is not a tax cut coming on January 1, 2011. It is a massive tax increase that the Republicans are dead set against. Obama and company want to sweet talk their way into continuing the spending binge. As Ronald Reagan said, when a kid misbehaves, it’s time to take away their allowance. Don’t let them snow you.
