...So where is the debate today? Quite frankly, it’s a one-sided discussion. Rather than fight like Reagan on the issue – and build a new consensus – Republicans have been near silent on taxes subject to arguments such as these, almost without rebuttal: 1) the rich are not paying their fair share, and
2) the Republicans want to go back to the policies of Bush.
Since the top 1% pay over 37% of income taxes and the top 10% pay over 70%, it’s hard to imagine that isn’t fair. Romney should point blank ask Obama in the debates: if 37% isn’t enough and 70% isn’t enough – what would be enough?
But the real point is that the Democrats are winning the argument because the discussion is about fairness instead of how to jumpstart the economy and therefore revenues.
As for the Bush tax cuts, the national Republicans have virtually ceded the argument that the Bush policies, i.e. his tax cuts, led to the economic downturn. Of course, it is economically absurd to claim that people keeping a greater share of their own money caused an economic decline. That didn’t happen under Bush and has never happened in history...
...If Republicans can’t make that case for themselves, while they may win because of Obama’s dismal record, they won’t have the mandate they need for real tax reform, which is so desperately needed. To get that mandate, they have to take on the issue and stop ceding ground to the Democrats.
They can explain that the mom and pop who own the corner restaurant started it by saving all their money – savings which likely wouldn’t have occurred or would have been delayed if tax rates were too high. They probably wouldn’t have hired a dishwasher in 1978 at $2.50 an hour. That person wouldn’t have learned the discipline of showing up to work on time and the responsibility of a job. Eventually that person went on to college with his job savings, and even graduate school. That’s part of my story and many others – it is something people can understand.
People also understand that when businesses want to spur sales, they put things on sale – i.e. they lower prices. Our government can spur economic activity by doing the same, by lowering the price of jobs (reducing regulations) and by lowering the price of income (by reducing tax rates).
John Maynard Keynes said that “high tax rates defeat their own object.” If Keynes can make that argument and Kennedy and then Reagan can advocate for tax cuts, our national Republicans need to make the case – now.
forbes.com |
