It used to be a pillar of the Republican Party.
Fiscal conservatism, to put it simply is don’t spend money you don’t have and don’t spend money who shouldn’t be spending. The upshot of fiscal conservatism is limited government, reduced spending and lower taxes.
Over time, fiscal conservatism was replaced by lower taxes.
Lower taxes. Lower taxes. Lower taxes. Lower taxes.
It became the endless refrain of the Republican Party.
Lower taxes is a tool of fiscal conservatism but lower taxes is NOT actual fiscal conservatism.
Let’s say you are the government of “you”. The founding principals of the government of you are life, liberty and the pursuit of happiness. You jusy want to live your life, to be free and do what makes you happy. To enjoy nice meals in nice restaurants, to see plays and movies that bring you joy, to do things that bring fulfillment to your lifelike painting water color landscapes and taking guitar lessons. And you could do all that too but there is a tax on your time to do these things.
You would have more time if you didn’t have to go to your damn job. 40 hours a week is 40 hours not enjoying nice restaurants, movies, plays, painting and music. That 40 hours is a tax on your time.
So you arrange for a tax cut. You cut your hours at work to 35 hours. That’s five more hours to enjoy nice restaurants, movies, plays, painting and music.
However, that’s also five hours less income to pay for nice restaurants, movies, plays, painting and music.
True fiscal conservatism would indicate you have to “pay” for that tax cut. So you might cut attending “plays” from your budget to make up for those five hours of lost income.
But what if you don’t. You insist that having those five hours to do fun stuff will make you a happier person, a more productive employee and you can earn in 35 hours what you earn in 40.
But you know what would make you happier? Even MORE time to enjoy nice restaurants, movies, plays, painting and music.
So you push through another tax cut, this time three more hours out of your work week. Now you have EIGHT hours more to enjoy nice restaurants, movies, plays, painting and music.
And you might be a happier person but those additional earnings don’t come through with your reduced schedule.
And then stuff happens. You got sick and had to go to the hospital; whoops, you now have medical bills. Your car broke down; car repairs ain’t cheap. A winter storm strikes, pushing temperatures down to sub-zero so your heating bill shoot way up.
Now fiscal conservatism would say it’s time to get your ass back to work. You have more expenses than funds to cover them Yes, you need a tax increase, put more hours in at work to get some money back to take care of these expenses.
No! You are NOT about tax increases! You are only about tax cuts! You propose that the answer to your medical expenses, car repair bills and heating bills as well as continuing to enjoy nice restaurants, movies, plays, painting and music is another tax cut.
You give yourself another two hour tax cut. You’re now working only 30 hour a week to cover your medical expenses, car repair bills and heating bills as well as continuing to enjoy nice restaurants, movies, plays, painting and music is another tax cut but life can only get better because there is more time for you.
This, of course, stupid.
Yet this is how Republicans approach tax policy. Whatever it takes, lower taxes. Lower taxes. Lower taxes. Lower taxes.
Who doesn’t want lower taxes? I would put it to you that the most left leaning, tree hugging, whale saving vegetarian liberal in a VW van wouldn’t say no to lower taxes. Lower taxes means more money in my pocket and that’s a good thing.
But why do we pay taxes in the first place? To fund those functions that help us to form a more perfect Union, establish Justice, insure domestic Tranquility, provide for the common defense, promote the general Welfare, and secure the Blessings of Liberty to ourselves and our Posterity, that sort of thing.
If your idea of a fiscal strategy is to lower taxes, lower taxes again and then lower taxes some more, there may be more money in my pocket but less money for police officers, fire fighters, teachers, soldiers and more. Yeah, I’ll get mine but what of those who need help? Maybe I’m OK but what of the general Welfare of our nation?
Since 2012, the state of Kansas has pursued a fiscal strategy is to lower taxes, lower taxes again and then lower taxes some more. How did that go?
Republican Gov. Sam Brownback came into office on the wave of the Tea Party movement with a three point plan.
1. Cut taxes
2. Blah blah blah blah
3. Prosperity!
Brownback’s tax plan, enacted with the help of a conservative-dominated Legislature, initially earned him praise from small-government advocates as a potential model for elsewhere in the nation.
But the promised growth didn’t show up. Revenues were lower than expected, meaning budget shortfalls would be greater than expected.
State programs were slashed it didn’t help. The state Supreme Court intervened, saying the budget didn’t provide enough funding for the state’s public school system.
The state’s credit rating was downgraded.
Then the state’s credit rating was downgraded again.
The Kansas state legislature, still controlled by Republicans, mind you, looked at all this and decided, “Well, this sucks”. The state was facing a $889-million budget shortfall through June 2019.
Republican Rep. Melissa Rooker observed, “It’s not just in blue districts; it is statewide. People recognized the damage being done to infrastructure, schools and the services and the state functions they depend on.”
Fiscal conservatism would say it’s time to get your ass back to work. So the Senate voted 27 to 13 and the House of Representatives 88 to 31 to increase income taxes and raise a projected $1.2 billion over the next two years.
The Cato Institute, a libertarian think tank with a major hard on for tax cuts, downgraded Brownback from an “A” grade in 2014 to a “D” in 2016.
That’s like Harvey Weinstein telling Matt Lauer, “Dude, you went too far.”
Rep. Dan Hawkins, a conservative Republican, wasn’t on board with eh proposed tax increase at first. But after it was clear that Brownback had zero interest in any compromise, Hawkins flipped his support.
“My thought is, this is probably as good as it’s going to get,” Hawkins said. “Let’s just stop this nonsense and make sure the state can move forward and pay our bills and do what we need to.”
Old habits die hard so Gov. Brownback vetoed this legislation but the Kansas state legislature overrode that veto.
In short, lower taxes is a good thing but it’s not the only thing. Taxes are how we pay for a free, equitable and safe society. But it’s a lesson that gets forgotten I the rush to lower taxes, lower taxes again and then lower taxes some more.
And the lesson learned in Kansas is being ignored in Washington DC in a desperate bid to score a win for the Republican Party and Li’l Donnie.
Here’s a thought: how about scoring a win for the American people? That would be a nice change of pace.
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While you were sleeping.....
The Senate Republican tax passed early Saturday morning a bill that recycles decades of Republican ideology on trickle-down economics and trusts that executives will hand over their new gains to average-income workers.
Just like Kansas was hoping for.
After months of negotiations, the Senate passed the proposal, 51-49, with just one Republican ― Bob Corker of Tennessee ― joining all Democrats in opposition. Corker took issue with how much debt the bill would produce, and after the Senate parliamentarian struck down Corker’s debt-control proposal, GOP leaders invited the retiring Republican to just vote no rather than finding him an accommodation.
This legislation will cut the corporate tax rate from 35 to 20 percent, which all along has been the priority all along. Republicans say this dramatic reduction will unleash the economy and raise wages. It is more likely the money will go to shareholders instead of workers.
So there's that.
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