Tag Archives: government debt

Time to shut it down

Source: Future of Freedom Foundation
by Laurence M Vance

“The specter of a government shutdown is looming once again, since funding of the federal government expires on Friday, December 8. But in a recent appearance on Fox News Sunday, Sen. John Thune (R-S.D.), the third-ranking Republican senator, stated, ‘There shouldn’t be any discussion about shutting down the government. We can make this thing work.’ … Contrary to Senator Thune, there should be a discussion about shutting down the government. The federal government’s annual budget is currently about $4 trillion. When Thune talks about making things work and negotiating he is talking about how a small portion of this $4 trillion will be spent. Democrats and Republicans are united in agreement about the vast majority of federal spending. What is never discussed is the constitutionality and legitimacy of all federal spending.” (12/06/17)


Venezuela’s default disaster

Source: Ludwig von Mises Institute
by Daniel Lacalle

“Socialism always promises heaven and gives hell. In the early hours of Thursday, November 2, the Maduro regime certified its latest failure with what they promised would never happen: technical default. With his usual arrogance, Maduro issued a ‘decree’ demanding ‘the refinancing and restructuring of the debt as of November 3.’ That is, default. The bad news for investors or high-yield hunters is that the likelihood of being swindled again is almost 100%.” [editor’s note: It should be noted that “investors” in state debt are “investing” on a promise that others will be robbed to pay them back with interest. They deserve to lose every dime they “invest” in that kind of enterprise – TLK] (11/20/17)


Sorry, Republicans: If you’re not cutting spending, you’re not cutting taxes.

Source: Garrison Center
by Thomas L Knapp

“President Donald Trump and Republican congressional leaders rolled out their new tax plan on November 2. Since all bills must have titles, they’re calling this one ‘The Tax Cuts and Jobs Act.’ Republican ‘tax reform’ theatrics have worn thin over many months of waiting, but I still prefer a more theatrical title. ‘A tale Told by an idiot, full of sound and fury, Signifying nothing’ rings true. Four centuries later, Shakespeare’s MacBeth is a better description of the matter than any coming out of Washington, DC. Yes, there’s plenty of quibbling across the aisle over everything from top rates to the home mortgage interest deduction, but neither party’s politicians seem willing to tackle the most basic, indisputable, and relevant fact: Since Congress isn’t cutting spending, Congress won’t be cutting taxes either.” (11/03/17)


Aren’t Republicans supposed to care about the deficit?

Source: Cato Institute
by Michael D Tanner

“Do you remember when Republicans at least pretended to care about government overspending? Last week the Congressional Budget Office announced that the budget deficit for 2017 will top $665 billion, the highest level since 2013. Worse, while the deficit in 2013 was still being driven in part by one-time spending items, including TARP and the stimulus bill, the current tide of red ink appears to be more structural in nature, the result of rising entitlement costs and routine overspending. In fact, the federal government will actually take in more in taxes this year than it did last year, the result of increased economic growth. But those increased revenues are more than offset by $130 billion in higher spending.” (11/01/17)


US House narrowly passes budget, paving way for $1.5 trillion tax cut

Source: Washington Post

“House Republicans set the stage Thursday for an intense sprint toward a landmark tax overhaul, overcoming internal dissension and Democratic opposition to move forward with legislation that could cut revenue by up to $1.5 trillion over the coming decade. Budget legislation passed Thursday will allow the GOP to pass its tax plan without Democratic help, but the close 216-to-212 House vote reflected ongoing tensions about the tax push among Republicans — and many expect the qualms to grow once draft legislation is released next week.” (10/26/17)


To really cut taxes, we must cut government spending

Source: American Institute for Economic Research
by Sheldon Richman

“[I]f tax revenues drop while government spending remains constant or grows, real taxation — the extraction and consumption of resources from the industrious sector — will not have been reduced. If government does not take the resources openly, it will do so by stealth, disguising the extraction in arcane tax-code provisions that obscure who really pays the taxes; by acquiring purchasing power at the expense of the bulk of the people by printing money; or by borrowing, which pushes the burden onto future generations. Borrowing not only burdens our descendants, it also diverts resources from productive use today. That creditors choose to lend the government money should not blind us to the fact that they do so only because the government can tax someone to repay the loans.” (10/24/17)


Tax cuts … and?

Source: National Review
by Kevin D Williamson

“Taxes can be a drag on growth, but so can deficits. Government debt hoovers up capital and puts upward pressure on interest rates. … As President Trump has rightly emphasized, regulation also presents a potentially significant drag on the economy; by some estimates, U.S. companies pay more in regulatory-compliance costs than they do on business taxes. It is not at all clear that tax rates are the major issue — or even a major issue — when it comes to economic growth and job-market dynamism in 2017 and the near future. So, tax cuts apparently trump cuts to mandatory spending. No surprise: Tax cuts are popular, and spending cuts are not. Real profile-in-courage stuff right there, Republicans.”


A new “Grand Bargain” for Americans to reduce US debt

Source: Heartland Institute
by Barry Poulson & John Merrifield

“The term ‘Grand Bargain’ is now infamously associated with failed budget negotiations between the executive branch and Congress, most notably negotiations between former Republican House Speaker John Boehner of Ohio and President Barack Obama. The outcome of this failure to agree on a budget has led the federal debt to climb to $20 trillion, and unconstrained growth in deficits and debt is projected to continue in the coming decades. … In our forthcoming book, ‘Restoring America’s Fiscal Constitution,’ we show how fiscal rules could be designed to balance the budget and reduce debt to tolerable levels over a two-decade period. Of course, fiscal discipline will not be easy.” [editor’s note: Any proposed “bargain” with politicians over spending/debt founders on the fact that they’re lying sacks of shit who can’t be trusted to keep their word – TLK] (10/11/17)


Trump budget director: What, me worry (about the national debt)?

Source: The Daily Beast
by Matt Lewis

“It’s fun to debate whether Mulvaney has betrayed deeply held free market principles, in exchange for a belief that spending can stimulate the economy. But as Morrissey and Weissman suggest, the big story here seems to be the situational ethics. Just as homelessness seems to cease being a problem worthy of coverage when Democrats are in office, hand-wringing about spending our children’s inheritance seems to go out the window once a Republican is in the White House. How many times did Paul Ryan say ‘we’ve got to tackle this debt crisis before it tackles us’ during the Obama era? Mulvaney was instrumental in making the point that this was an existential moral issue. ‘Anybody who is up to speed on budget issues should be scared to death by what’s happening with the debt and the deficit in this country,’ he said in 2011. ‘If you’re not losing sleep over it, then you’re simply not paying attention.'” (10/09/17)


Will tax reform increase or limit liberty?

Source: Campaign For Liberty
by Ron Paul

“Pairing tax cuts with increases in federal spending and debt — and the drafters of the framework admit their plan will increase the debt by at least $2.2 trillion — means that the economic benefit from the tax cuts will be outweighed by the economic harm caused by the increase in debt. Increasing the debt also means the Federal Reserve will further devalue the dollar in order to monetize that debt. While the Republican tax and budget plans predict uninterrupted economic growth, the US economy is far more likely to undergo a major economic crisis caused by a rejection of the dollar’s world reserve currency status. While all supporters of individual liberty and sound economics should support tax cuts, the Republicans’ failure to cut spending means that their tax plan will do little to increase liberty or prosperity.” (10/09/17)