Saturday, June 14, 2008

What's Wrong with American style of Democracy?- The illusion of a tax cut

A great contribution by George W. Bush is the discovery that tax cut is the secret to winning the election. No American in his/her right mind likes to pay more taxes. Paying less taxes sounds good to everybody.

Now the two contending candidates, McCain and Obama, are trying to out tax-cut each other. True, McCain wants to give the tax cut to the rich and Obama to tax the rich and give the middle class the tax break. But that's splitting trivial hair compared to the big mantra. The important message is to cut taxes.

So far, no one has bothered to look at the flip side of this issue. Cutting taxes means reducing the revenue needed by the federal government to operate (unless of course the tax cut leads to economic growth and makes up for the lowered tax rate, which the Bush economists espoused but they were wrong). The candidates do not explain how they will cut expenditures sufficiently to balance the budget.

The Bush fiscal policy has resulted in recurring budget deficits and a record breaking national debt. Future generations of Americans will be paying off the debt incurred by the current generation that went along with this sort of pipe dream economics.

Unless either presidential candidates can show that they can cut taxes and still balance the national budget and have something left to pay down some of the Bush debt, they are merely pandering to those unthinking Americans looking for a free lunch.

So, my fellow Americans, be sure to listen to the candidates very carefully. If their scheme for a tax cut is not accompanied by serious solutions to balance the budget, reject their candidacy. They think you are too dumb to figure it out that a tax cut that adds to the national debt is mortgaging the future of your kids and grandkids.

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