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Distorting the Tax Policy Debate (Ron Paul)
U.S. Rep. Ron Paul, R-Texas ^ | 2010-12-20

Posted on 12/25/2010 3:56:38 PM PST by rabscuttle385

George Orwell warned us about the use of “meaningless words” in politics, words that are endlessly repeated by sloganeering politicians until they have no meaning at all. Meaningless words certainly were on display during last week’s congressional debate over the latest tax bill.

Over and over again we heard trite, empty phrases like “tax cuts for the wealthiest 2%,” “tax giveaways,” “tax earmarks,” and “borrowing money to give to millionaires.” Time and time again the same falsehoods were presented as fact, and reported as such by a credulous media.

But all of these clichés about taxes are based on the presumption that government has a right to all of your income, and so government “gives” you something when it allows you to keep a portion of that income. To this mindset, tax cuts represent a “cost” to government. After all, they argue, money that really ought to go to the most noble of purposes-- wealth redistribution via taxation--is being kept by greedy people and corporations who just don’t want to pay their fair share.

Far too many Americans truly believe that tax cuts represent a government giveaway, indistinguishable from an outright subsidy or entitlement payment. To combat this mindset, we need to be clear with our language.

A subsidy, properly understood, occurs when government takes tax dollars and gives them to favored individuals, companies, or industries. A tax cut, by contrast, simply means government takes less from an individual, company, or industry. When government takes less from you, it has not given you anything; it merely has harmed you less. This is the critical distinction that has been lost in the endless, tired debate about tax policy.

Of course the bill passed last week did contain some actual spending, mostly in the form of an extension of unemployment benefits for another 13 months. The total spending in the bill amounted to about $60 billion. But the tax savings in the bill, meaning the amount of money that will remain in the hands of taxpayers rather than being sent to Washington, is approximately $850 billion. So while a clean tax bill certainly would have been preferable, the tax relief it contains is significant. It means $850 billion will be spent, saved, or invested by American citizens rather than being sent into the black hole known as the federal treasury.

The media, however, dutifully reported that opposition to the bill came from concerned members of Congress who felt the $850 billion “cost” of the bill was too high, and would add too much to the deficit. As always, they could not distinguish between government giving and government taking away. The American people already pay plenty in federal taxes; the deficit is the result of a spending problem, not a revenue problem.

Had the bill not passed, millions of Americans would have seen their paychecks shrink in January due to increased tax withholding. That is the plain and simple truth, and that is why I voted for the bill.


TOPICS: Issues
KEYWORDS: rlc; ronpaul; taxes

1 posted on 12/25/2010 3:56:41 PM PST by rabscuttle385
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To: bamahead; calcowgirl; Bokababe; dcwusmc; stephenjohnbanker; DoughtyOne
A tax cut, by contrast, simply means government takes less from an individual, company, or industry. When government takes less from you, it has not given you anything; it merely has harmed you less. This is the critical distinction that has been lost in the endless, tired debate about tax policy.

Ping!

2 posted on 12/25/2010 3:57:18 PM PST by rabscuttle385 (Live Free or Die)
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To: rabscuttle385

This idea that the tax rate reductions are a net cost to the government is a distraction.

The plain truth is that the democRATS who support higher marginal tax rates are attempting to keep the “working classes” working. A few years in the highest income brackets may be enough to sustain an individual for the rest of their lives if the government didn’t confiscate 40% or more of it.

Property taxes are the most equitable taxation in as much as tax rate(s) on a particular designation of property type, such as R-1 (single family residential) are uniform within the county and municipality. Exceptions are made for waterfront and the like. This is a form of wealth tax. Taxes are based on the assessed value.

Income taxes are a tax on the acquisition of wealth. Thus the wealthy use them to keep the newly minted money of the entrepreneur from becoming wealth. IT keeps the vulgar, uncooth working class types from invading those enclaves that they are so fond of like Aspen, Martha’s Vineyard.

Simply put, they cannot stand the competition from the bourgeois.


3 posted on 12/25/2010 4:28:27 PM PST by Ouderkirk (Democrats...the party of Slavery, Segregation, Sodomy, and Sedition)
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To: rabscuttle385

Too bad he is not in the WH instead of Obama.


4 posted on 12/25/2010 4:29:56 PM PST by screaminsunshine (Americanism vs Communism)
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To: rabscuttle385
Ron Paul is an impostor, he is a tool of the left who speaks in half truths and makes statements that no true conservative would, while voting for legislation that no constitutionalists would even consider.
5 posted on 12/25/2010 4:39:56 PM PST by RINOS ARE RADICALS
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To: rabscuttle385

He voted for the Obama tax extension with all the additional spending?


6 posted on 12/25/2010 4:41:34 PM PST by RINOS ARE RADICALS
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To: rabscuttle385
What he doesn't mention that is relevant to this, is that when taxes are high on the wealthy, the wealthy hide that money by investing in tax-free government bonds thereby taking the money out of the economy to avoid the tax. So via bonds or taxes government gets to use the wealthy's money, instead of the wealthy spending it on goods and services provided by the middle class.

In short by raising taxes on the wealthy, the gov still channels all that money their way -- instead of the money getting channeled in ways that enrich the rest of us.

7 posted on 12/25/2010 5:01:41 PM PST by Bokababe (Save Christian Kosovo! http://www.savekosovo.org)
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To: rabscuttle385
Of course the bill passed last week did contain some actual spending, mostly in the form of an extension of unemployment benefits for another 13 months. The total spending in the bill amounted to about $60 billion.

Pure BS, That is just about what the Grassely screw the tax payer will spend in one year.

8 posted on 12/25/2010 6:06:32 PM PST by org.whodat
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To: RINOS ARE RADICALS

You wouldn’t know a true conservative if one bit you on the ass.


9 posted on 12/25/2010 6:12:04 PM PST by Lurker (The avalanche has begun. The pebbles no longer have a vote.)
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To: Lurker
If you think libertarian Ron Paul is a conservative, you are more than a little on the dense side.
10 posted on 12/25/2010 6:15:19 PM PST by org.whodat
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To: Lurker

The guy voted for the tax package which adds 300 billion to the debt.

I am sorry, but you are the one who is mistaken kind sir.


11 posted on 12/25/2010 6:26:06 PM PST by RINOS ARE RADICALS
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To: Lurker
You wouldn’t know a true conservative if one bit you on the ass.

A real conservative, as well as, an ethical and moral representative would not load bills up with pork in the form of earmarks and then vote against the bill, knowing it wasn't going to pass so he could say he voted against it.

A real conservative would not have voted for the repeal of DADT, period.

A real conservative is a fiscal, moral, and national defense conservative, not just one of the three.
12 posted on 12/25/2010 7:20:04 PM PST by SoConPubbie
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To: SoConPubbie; Lurker
A real conservative, as well as, an ethical and moral representative would not load bills up with pork in the form of earmarks and then vote against the bill, knowing it wasn't going to pass so he could say he voted against it.

Sorry, that should have said the following:

A real conservative, as well as, an ethical and moral representative would not load bills up with pork in the form of earmarks and then vote against the bill, knowing it was going to pass so he could say he voted against it.
13 posted on 12/25/2010 7:38:52 PM PST by SoConPubbie
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To: RINOS ARE RADICALS

And just HOW does keeping tax rates lower than they were (or would have been again) contribute to the deficit, pray tell? Or is not stealing more of OUR OWN MONEY FROM US somehow a “cost” to government in your mind? If your answer is “yes,” please explain WHY you feel that government should hold title to what is MINE by right, the right of having EARNED it. Why THEY should be able to take MINE, as much as they please, and call it doing me a kindness by letting me keep a LITTLE of my own property...

I look forward to your reply.


14 posted on 12/25/2010 10:34:12 PM PST by dcwusmc (A FREE People have no sovereign save Almighty GOD!!! III OK We are EVERYWHERE)
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To: org.whodat

Your reply has the unfortunate problem of sounding like either code talk or gibberish. Could you, would you please clarify it so I know what you’re talking about? What’s BS? Who’s Grassely screw the taxpayer? How and on what will he or she spend $60 billion?

Thanks in advance.


15 posted on 12/25/2010 10:42:22 PM PST by dcwusmc (A FREE People have no sovereign save Almighty GOD!!! III OK We are EVERYWHERE)
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To: RINOS ARE RADICALS

“Ron Paul is an impostor, he is a tool of the left who speaks in half truths and makes statements that no true conservative would, while voting for legislation that no constitutionalists would even consider.”

My biggest gripe with RP, I’ve said since before ‘08, is that he does NOT get it about radical Islam and what motivates it. He’s an isolationist who thinks that if we just mind our own business and play nice, the jihadists will go away and leave us alone. He’s a nightmare when it comes to foreign policy and that’s a really big deal (to me at least) in today’s dangerous world. And he’s said in so many words that 9/11 was our fault for having a presence in the middle east.


16 posted on 12/25/2010 10:51:24 PM PST by llandres
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To: dcwusmc
Dingbat Senator Grassley is the man pushing the corn fuel subsidy crap, and he has always been that man, He needs permanent retirement. The payout to farmers and producers to produce something that he then wrote laws forcing people to buy. No different than obamma heath program.
17 posted on 12/26/2010 5:28:03 AM PST by org.whodat
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To: dcwusmc

Maybe you should read the bill that was passed it has around 300 billion of entitlements attached to it.

The tax rates staying the same while spending continues to rise to me is not a bill a true conservative would sign especially when you are seating a new congress in a couple of months.

So I think they should have proposed a tax cut and made them permanent, not keeping them the same for only two years and adding another 13 months to unemployment benefits.

You must be responding to someone else, I am saying that Paul should have not signed this bill because it is more of the same.


18 posted on 12/26/2010 7:44:41 AM PST by RINOS ARE RADICALS
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To: rabscuttle385

B U M P


19 posted on 12/26/2010 2:29:13 PM PST by stephenjohnbanker
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To: org.whodat

OK. Now I understand your reply. Thanks for the clarification!


20 posted on 12/26/2010 11:30:15 PM PST by dcwusmc (A FREE People have no sovereign save Almighty GOD!!! III OK We are EVERYWHERE)
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To: screaminsunshine
....”Too bad he is not in the WH instead of Obama.”....

Ron Paul? THE Ron Paul? In the freakin’ White House? THE Ron Paul????? No thank you.

I will fight evil and liberals, wherever I find them. Gee, I wonder why “Dr. Paul” can not even get 10% of the GOP vote let alone being handed the white house? CLUE: Most of us think he is NUTS!

As opposed to Obama being in the white house? I am not too certain that their political views are that far apart....

Wonder what they have in common?

Surrender monkeys?

911 “Truthers”?

A lot of years have passed since I was last in Houston, but things must have really changed there. I can not imagine that the people I knew in Houston back then would seriously vote for “Dr. Paul”. The people I met, way back then, were conservatives- Not Pretenders!

When “Dr. Paul” becomes a conservative, you be sure to come back and talk to us. Oh, and tell him next time he tries to run for the white house, Dennis is probably not the best running mate??

The GREAT “Dr. Paul”. And his ‘lil Nazi supporters. The story just goes on and on..................

21 posted on 12/28/2010 12:15:30 AM PST by Mtner77
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To: rabscuttle385

Tax cuts are irrelevant. If anything, we need to RAISE taxes. The only thing that counts is CUTTING SPENDING!

How sad that Ron Paul, the most libertarian guy in Washington, doesn’t understand that. We’re DOOMED! :-(


22 posted on 01/01/2011 7:18:49 PM PST by Zanton1
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To: Zanton1; darkwing104; Old Sarge; paulycy; darkangel82
Tax cuts are irrelevant. If anything, we need to RAISE taxes.

SNIFF!

23 posted on 01/02/2011 5:52:16 AM PST by rabscuttle385 (Live Free or Die)
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To: RINOS ARE RADICALS

Your argument is unassailable.

Oh, wait, you didn’t bother to make one.


24 posted on 01/02/2011 6:09:14 AM PST by FreedomPoster (Islam delenda est.)
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To: Zanton1

25 posted on 01/02/2011 1:18:00 PM PST by Old Sarge (Marking Time On The Government's Dime)
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To: rabscuttle385

How is it rabs that you can despise RINOs and still buddy up with ron paul? That kook endorses code pinko fags and espouses all their flag burning traitor BS. He has a large following of scorched earth libertarian (liberal) dope, sodomy and abortion activists who march lockstep with the hard core leftists. And he would seek advise from Kookcinich on every move, wouldn’t surprise me the least bit if he picked dennis the menace for a running mate.


26 posted on 06/18/2011 4:20:36 PM PDT by DirtyHarryY2K (The Tree of Liberty is long overdue for its natural manure)
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