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George
Orwell warned us about the use of “meaningless words” in
politics, words that are endlessly repeated by sloganeering politicians until
they have no meaning at all. Meaningless words certainly were on display
during last week’s congressional debate over the latest tax bill.
Over
and over again we heard trite, empty phrases like “tax cuts for the wealthiest
2%,” “tax giveaways,” “tax earmarks,” and
“borrowing money to give to millionaires.” Time and time again
the same falsehoods were presented as fact, and reported as such by a
credulous media.
But
all of these clichés about taxes are based on the presumption that
government has a right to all of your income, and so government
“gives” you something when it allows you to keep a portion of
that income. To this mindset, tax cuts represent a “cost” to
government. After all, they argue, money that really ought to go to the most
noble of purposes – wealth redistribution via taxation – is being
kept by greedy people and corporations who just don’t want to pay their
fair share.
Far
too many Americans truly believe that tax cuts represent a government
giveaway, indistinguishable from an outright subsidy or entitlement payment.
To combat this mindset, we need to be clear with our language.
A
subsidy, properly understood, occurs when government takes tax dollars and
gives them to favored individuals, companies, or industries. A tax cut, by
contrast, simply means government takes less from an individual, company, or
industry. When government takes less from you, it has not given you anything;
it merely has harmed you less. This is the critical distinction that has been
lost in the endless, tired debate about tax policy.
Of
course the bill passed last week did contain some actual spending, mostly in
the form of an extension of unemployment benefits for another 13 months. The
total spending in the bill amounted to about $60 billion. But the tax savings
in the bill, meaning the amount of money that will remain in the hands of
taxpayers rather than being sent to Washington, is approximately $850
billion. So while a clean tax bill certainly would have been preferable, the
tax relief it contains is significant. It means $850 billion will be spent,
saved, or invested by American citizens rather than being sent into the black
hole known as the federal treasury.
The
media, however, dutifully reported that opposition to the bill came from
concerned members of Congress who felt the $850 billion “cost” of
the bill was too high, and would add too much to the deficit. As always, they
could not distinguish between government giving and government taking away.
The American people already pay plenty in federal taxes; the deficit is the
result of a spending problem, not a revenue problem.
Had
the bill not passed, millions of Americans would have seen their paychecks
shrink in January due to increased tax withholding. That is the plain and
simple truth, and that is why I voted for the bill.
Ron
Paul
www.house.gov/paul
Visit
Congressman Ron Paul's Web Site
Congressman
Ron Paul of Texas enjoys a national reputation as the premier advocate for
liberty in politics today. Dr. Paul is the leading spokesman in Washington
for limited constitutional government, low taxes, free markets, and a return
to sound monetary policies based on commodity-backed currency. For more
information click on the Project Freedom website.
Published
with the authorization of Dr. Paul.
Copyright
Dr. Ron Paul
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