Tag Archives: spending

A Misapprehension

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This one is, surprisingly, on the part of The Wall Street Journal‘s editors. In an otherwise cogent editorial with several sound points regarding former President and Republican Party Presidential candidate Donald Trump’s offers of specially targeted tax cuts, the editors closed with this mistake:

Mr Trump is now proposing to narrow the base, so [tax] rates will have to be higher.

Not at all. Alternatively, and far more optimally, with a narrower tax base, spending will have to be lower. That’s universal, too. With reduced (tax) revenues for any reason, spending would need to be lower. With current government spending, in fact, even with flat revenues, spending badly wants reduction.

It seems the august editors have lost sight of the cause of our nation’s deficits and debt, the cause extant throughout our history.

What She Said Then, What She Says Now

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News outlet writers are starting to object, however mildly, to Progressive-Democratic Party Presidential candidate Kamala Harris’ reluctance to do interviews and news conferences. Harris did do the one interview recently, with a friendly interviewer and while accompanied by her Comfort Running Mate, but that’s it. The press does have a beef about her apparent fear of sitting for unscripted interviews with objective interviewers—and doing them frequently and alone—and to have unscripted, free-wheeling news conferences of some duration and frequency where she wouldn’t know the questions in advance.

The press, though, couches their objections in the premise that without these interviews and news conferences, they won’t know what her platform is or what policies she intends to push were she elected.

Those of us outside the press, us less credulous average Americans, do know what her platform and policies are—Harris has told us quite clearly over the last several years, right up to mid-2024 when she supplanted Joe Biden as Party’s candidate.

Here is her platform made manifest, from what she has said and what she’s saying now, even if her remarks today are scattered about, and her remarks yesterday are being busily ignored by those same news outlet writers.

What She Said Then What She Says Now
There’s no question I’m in favor of banning fracking. I made that clear on the debate stage in 2020 that I would not ban fracking, as vice president I did not ban fracking, as president I will not ban fracking
“an undocumented immigrant is not a criminal”
And: once pledged to close all privately-run immigration detention centers “on day one” during her first presidential campaign		 Harris’ campaign manager: “I think at this point, you know, the policies that are, you know, having a real impact on ensuring that we have security and order at our border are policies that will continue”
January 2017 criticized t Obama’s refusal to veto a UN Security Council resolution on Israeli settlements. Israel has a right to defend itself, and how it does so matters.
I also expressed with the prime minister my serious concern about the scale of human suffering in Gaza…the images of dead children and desperate, hungry people fleeing for safety, sometimes displaced for the second, third, or fourth time.  We cannot look away in the face of these tragedies [not set at the feet of Hamas].
What She Said Then What She Still Says
Tax each stock and bond trade
Roll back 2017 tax cuts
Raise capital gains tax rates at the same rates as ordinary income		 Raise corporate taxes
Tax unrealized capital gains
4% “income-based premium” on households making more than $100,000 annually to pay for her version of “Medicare for All”
$10 trillion in public and private spending over 10 years to create millions of jobs and reduce greenhouse gas emissions		 Expand child tax credit and Earned Income Tax Credit, to be paid for by “there’s a great return on investment.”
Spending $25,000 via “tax credit” to cover the down payment costs for “first-time home buyers”

Do we believe her when she was saying what she believed, or do we believe her foxhole conversions of convenience today? I suggest, on the other hand, that where her positions today are substantially of those from yesterday, we certainly can take her at her word, and these are part of her clearly stated platform, also.

What’s in Harris’ Econ Plans?

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Here’s an overview.

  • federal limits on price increases for food producers and grocers
  • legislation creating a new series of tax incentives for builders who construct “starter” homes sold to first-time homebuyers
  • $40 billion innovation fund for businesses building affordable rental housing units
  • provide $25,000 in potential down payment assistance to help some renters buy a home
  • accelerate Medicare and other federal programs to “negotiate” with drugmakers to lower the cost of prescription medications
  • work with state entities to cancel $7 billion of medical debt for up to 3 million qualifying Americans
  • make permanent a $3,600 per child tax credit
  • new $6,000 tax credit for those with newborn children
  • cut taxes for some frontline workers by up to $1,500

Each one of these is inflationary in its own right, and each one will drive a need to increase taxes in order to pay for them.

It seems to me—and the press is complicit in this, however unintentionally, with its focus—that Harris’ plan for price controls on those food producers and grocers to combat what she’s pleased to call “price gouging” is nothing but a distraction to draw attention away from her other proposals in order to get many of them enacted unnoticed.

Yes and No

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The Wall Street Journal‘s editors opened one of their Friday editorials with this:

On taxes and spending, he [Minnesota Progressive-Democrat Governor and Progressive-Democratic Party Vice President nominee-in-waiting Tim Walz] has sought to outdo California progressives and is making Illinois look like a model of fiscal discipline.
Ms Harris is slipstreaming behind the Biden Administration policies and refusing to lay out her own policy agenda. This makes Mr Walz’s record as Governor over the last six years all the more revealing as a window on the duo’s plans for the country.

It’s certainly true that Walz’s behavior as governor is demonstrative. It is, though, not entirely “all the more revealing” of a Harris-Walz profligate tax and more profligate spend policy, should they get elected. The editors make that clear in their own words, for all that they seem not to recognize that: Ms Harris is slipstreaming behind the Biden Administration policies.

Harris is not at all “refusing to lay out her own policy agenda.” The Biden-Harris policies are precisely the policies she’s intent on continuing, and that extends far beyond economics. Harris, and Walz beside her, are intent on continuing the Biden-Harris open borders policy, and they’re intent on continuing the Biden-Harris policy of speaking loudly while carrying no stick at all regarding our nation’s most dangerous enemies, Russia, the People’s Republic of China, and Iran.

Harris’ slipstreaming is her statement, if not in so many words, of the policies she intends to pursue in a Harris-Walz administration.

Spending vs Revenue

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…in the Progressive-Democratic Party’s world.

The Wall Street Journal‘s editors have this one right.

CBO projects that this year’s budget deficit will clock in at roughly $2 trillion, some $400 billion more than it forecast in February and $300 billion larger than last year’s deficit.
…
Notably, CBO’s revenue projections are little changed. Revenue is expected to total 17.2% of GDP this year—roughly the 50-year average before the pandemic….

So, whence the deficit explosion? Plainly, it’s in all that spending that the Progressive-Democrat President Joe Biden and his Party syndicate in the House and Senate insist on doing.

CBO significantly revised up projections for federal spending. Outlays are now expected to hit 24.2% of GDP this year and average 24% over the next decade. Wow.

Mind you, that’s against a steadily, if slowly, growing GDP. That projection means that Party spending will be growing, too. All while revenue remains steady—which is to say, flat/not growing.

This is the politicians of the Progressive-Democratic Party’s utter inability to say “cut spending,” which plays into their inability actually to cut spending. After all, the money, in their minds, isn’t real; it’s only monopoly money, and if they need want more dollars, they have only to go to their Modern Monetary Policy money tree and pick more dollar bills from the branches.

The reality, though, is that the money Progressive-Democrats demand to spend is our money. Those politicians have no skin in the game beyond their political power. The skin us average Americans have in this game is real: our ability to get along in the real (and real economic) world in which we live, having as we do, only those real dollars that Party policies steadily devalue.

We need to remember that this November.