The Therapy Sessions
Friday, May 23, 2003
Tax cut without end?
The New York Times falls over itself to tell us how devastating the tax cuts will be to the government (and liberals will weep bitterly). Now I'm feeling better about this whole tax cut business (exactly as Karl Rove hopes I will).
My only beef with Bush is that he is not cutting SPENDING (which would make liberals wail and gnash their teeth).
A certain amount of Bush's swagger comes from his belief that a decreased tax "take" will actually increase revenue. And it will. But it is best not to push it.
Bush needs to remember that big government can be intrusive in other ways, too.
When the government is carrying a huge debt (where it appears to be headed), it is taking money away from private investment. The amount of money that can be borrowed is not bottomless. Too many entities chasing after too little funds means higher interest rates (contrary to popular belief, real interest rates are not "set" by the Fed), and these have the effect of dampening economic growth.
You have to cut spending. But 2/3 of government spending is MANDATORY, and it will not be easily trimmed.
You can't significantly cut the size of government without overhauling Social Security and the other entitlements (and switiching to private accounts).
I'm all for it, but the country - alas - is not.