The unequivocal promise "no new taxes" is a bad notion. It has the fiscal effect of painting oneself in a corner, artificially disabling a politician from flexibility in funding new crises.
In general, I'm not in favor of most taxes, but we need to keep our governmental flexibility open. It's true: the federal government and to a lesser degree the state spends money unwisely. No, profligately! But that spending is comfortably earmarked, and new crises are sure to come.
Therefore, wisdom would dictate that at least temporary tax increases would be necessary.
The state legislature should not "borrow" or loot from the Special Education Trust Fund or other funds for specified reasons. Instead, our representatives should seek out a reasonably fair degree of taxes that would also produce a relatively consistent revenue stream.
On the national level, I'm so glad the fiscal cliff was avoided. Both parties in Congress deserve credit for making it harder than it needed to be.
Damned politicians!
I'm relieved that this one didn't last any longer than it could have.
ReplyDeleteI'm afraid that we haven't really avoided the fiscal cliff ... rather, we're like the hapless character in the cartoons who has fallen over the cliff and is holding on to a thin branch that's ready to snap and let him fall the rest of the way. Yes, our elected reprehensives diddled with taxes and "permanently fixed" the dreaded AMT. But they also postponed the most difficult problems yet again, ensuring that we will go on lurching from crisis to crisis, with our economic fate in the hands of people who are driven by narrow political concerns and a profound mistrust (bordering on hatred) for those of other parties and opinions. Methinks we're screwed.
ReplyDeleteWe need a surtax to get us out of the debt created by the George Bush war years. For Veitnam we generated an income surtax to pay for it. These wars need one too.
ReplyDeleteBilbo, I fear we are too.
ReplyDelete