Monday, November 10, 2008

IBD: It's Not Taxpayers, But Tax Takers Who Aren't Doing Their Fair Share

"Since the war on terror began in 2001, Washington has sounded an intermittent drumbeat for the wealthy to make a greater "sacrifice" in the form of higher taxes. The dubious charge is that these taxpayers have been shirking a duty performed in other conflicts.

The accusation bears reviewing, and its inaccuracy needs to be refuted...

America is not undertaxed. Washington is overspent — but not as a result of the current conflict. The sacrifice truly called for is on the spending side. And it would not have to be large.

Last year's federal deficit was $161 billion. As large as it sounds in nominal terms, it was 1.2% of GDP and just 5.9% of total federal spending. Less than a 6% cut in spending would have eliminated the federal deficit.

So the next time the call for "sacrifice" comes from Washington, America's response should be: Lead by example."

Additional reading:
The Achilles Heel of a Progressive Income Tax
Tax Cuts for the Rich: 1999 vs 2007
Repeat After Me: The Poor Pay No Tax

No comments: