What the GOP has wrong about taxation

This week’s print edition of The Atlanta Voice provides two Associated Press stories discussing the Democratic Party’s fifty-state strategy and the GOP’s about face on fiscal responsibility. In one article, the Democrats’ “Resistance Summer” is designed to organize and expand the local Democratic voting rolls, seeded by an initial $1 million. According to the article, the Democratic Party wants to help its local affiliates manage rallies, town halls, neighborhood meetings, registration drives, and voter database improvements. The party wants to have local infrastructure in place that support their candidates’ arguments that Democrats provide a better way of governing.

The current governing Republican Party, putting health care on the back burner for a hot minute, has hopes that it can provide Americans with the ultimate political package, economic growth, and hope to do it with tax cuts. The Republicans also want to close the deficit gap and reduce debt by cutting programs including social welfare programs as proposed by President Donald Trump.  To make their tax cuts revenue neutral, Republicans are looking at getting rid of certain deductions including state and local tax deductions and the mortgage interest deduction.

Republicans have long argued that high deficits, high debt, and high taxes have limited individual liberty while the Democrats still have to go to a dictionary to look up the meaning of the word, “liberty.” Democratic efforts seem just focused on securing more bodies to the voting booth. No plan coming out of the Tom Perez-led Democratic National Committee on how to boost the economy for those very rural voters who thought, erroneously, that Donald Trump had a plan for growth.

I’m not surprised that the Democrats are lacking. Their idea of economic growth has always been low wage earning jobs combined with increased social welfare programs. And forget individual liberty unless the notion is closely related to crime against minorities or abortion rights for primarily white women.

The GOP talk a good game on liberty (see the article’s quick discussion of Orrin Hatch’s 2011 position on individual liberty, prosperity, and national security), but increasing military budgets or more weapons for cops does not increase individual liberty. The GOP is simply in favor of moving tax dollars, the collection of which is an oppressive action by the State, from one progressive-sponsored political package (social programs) to a conservative-preferred political package (national defense).

And when it comes to economic growth, the GOP offer nothing better. Tax cuts, going primarily to wealthier individuals, won’t do much for personal consumer expenditures. The wealthy have a higher propensity to save. Unless they see the “next big thing”” in terms of investment, I don’t see much pick up in economic activity.

Based on the structure of the political economy and the administrative state apparatus that runs it, diverting greater returns to investors or bond holders is what we should expect. Government ensures an orderly political economy in order to secure return of and on capital.

About Alton Drew

Alton Drew brings a straight forward and insightful brand of political market intelligence. Alton Drew graduated from the Florida State University with a Bachelor of Science in economics and political science (1984); a Master of Public Administration (1993); and a Juris Doctor (1999). You can also follow Alton Drew on Twitter @altondrew.
This entry was posted in Democrats, Donald Trump, Economy, GOP, government, taxes and tagged , , . Bookmark the permalink.

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