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The Tax Man Cometh July 7, 2010

Posted by geoff in News.
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You remember how they said that Tea Partiers were foolish for protesting taxes in a time when the tax rate was relatively low? And we replied that with the rate of deficit spending and the expansion of long-term entitlement commitments, the Tea Partiers were perfectly correct to be concerned about inevitable tax increases.

Today Ironman at Political Calculations takes a look at the Obama administration’s forecasts for tax revenues, noting that the projections starting in 2012 are well above the historical average, and they stay that way through the end of the projection. [Yeah, he's got a pretty nice-looking chart there. I'm not envious, though. Not one little bit. Really.]

So basically, by 2020 we’re going to have a government which will grow accustomed to gorging itself at some rate north of 19.5%, versus the 1980-2007 average rate of 18.4%. That’s certainly the wrong direction as far as libertarians and conservatives are concerned. Of course, it’s all supposed to be paid for by eliminating the Bush tax cuts on the rich. But as the ‘rich’ respond to their increased taxes by moving their money around to minimize their tax burden, and raising prices on their goods to restore their take-home income levels, it will fall upon the middle class and upper middle class to pick up the slack.

As usual.

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Comments»

1. Cathy - July 9, 2010

Thanks Geoff.

We Tea Party dudes and babes thank you too.

*Crap!*

2. Mr. Matamoros - July 9, 2010

Hmmm…I wonder when they are going to come for my 401k plan…

3. Don - July 9, 2010

Your characterization of the tea partiers’ response is a little disingenuous. I don’t detect a unified, coherent response at all, save for a lot of anger about federal spending and alleged overreaching.

Are you suggesting that the visceral reaction of tea partiers is due to projected increases in federal taxes and entitlements? Obama has spent a lot of money, and deficits/the growth of federal entitlements are legitimate concerns for the economy, long term. But these trends have been around for a while and discernible to any intelligent person. Where were the tea partiers when Bush was fighting two wars on a credit card? Their sudden materialization, and the demographic of their members, makes one question the purity of their motives, in my opinion.

4. BrewFan - July 9, 2010

Don, Don, Don. Are you suggesting that fighting wars is the moral equivalent to unabashed pork barrel spending like the ‘stimulus package’, the ’09 supplemental, and the phantom ’11 budget that was never voted on but was deemed passed?

I find it hard to believe you don’t know why the tea party movement evolved. I mean, two minutes of googling will answer that question. Your’s may be the greatest case of denial ever recorded on the interwebtubes.

5. Cathy - July 9, 2010

Remember homework assignments in junior high school where we had to correctly use all our vocabulary words for the week in one or two paragraphs?

6. scottw - July 9, 2010

Good call.

7. Michael - July 9, 2010

Their sudden materialization, and the demographic of their members, makes one question the purity of their motives, in my opinion.

Sheesh. The obvious “demographic” is that Tea Party folks are just the sort that pay most of the taxes and don’t ask for handouts, subsidies, preferences or overpaid public sector jobs. You bet our motives are pure. We’re sick of getting robbed. You’re right that minorities are underrepresented at a Tea Party rally. So are postal employees, teachers, and all manner of bureaucrats.

8. Cathy - July 9, 2010

Some Tax Man music.

9. TXMarko - July 9, 2010

No, no, you are all missing his point!!

Don is actually calling the Tea Partiers Racists because they supposedly said nothing when the white guy was creating spending trends that are ‘discernible to any intelligent person’!!

Ergo, any excessive spending by the current Administration,must be ignored, not only because of the Party change, but because of the Race change.

10. Michael - July 9, 2010

Don is actually calling the Tea Partiers Racists because they supposedly said nothing when the white guy was creating spending trends that are ‘discernible to any intelligent person’!!

Well, I ain’t stoopid and I ain’t racist. I think Don must be talking about Geoff.

11. geoff - July 9, 2010

I don’t detect a unified, coherent response at all, save for a lot of anger about federal spending and alleged overreaching.

I’m sure the list of things you don’t detect is long and varied.

Are you suggesting that the visceral reaction of tea partiers is due to projected increases in federal taxes and entitlements?

No. I’m stating it as plain fact.

But these trends have been around for a while and discernible to any intelligent person.

Now who’s being disingenuous? “Trends,” yes. But of this magnitude? No. And accompanied by permanent spending commitments? No.

Their sudden materialization, and the demographic of their members, makes one question the purity of their motives, in my opinion.

They were always there. And they were always ticked off. They didn’t like Bush’s budgets, but they certainly preferred them to the current budgets. The Stimulus pushed them (and maybe the economy) over the edge. And they’re at least as mad at Harry Reid (a white guy!!) and Nancy Pelosi (a white woman!!), as they are at Barack Obama. It’s equal opportunity loathing for the fiscally incompetent.

As to questioning motives, I don’t think we have any doubts about yours.

12. Michael - July 9, 2010

See, Don, I told you that Geoff is stupid and racist.

13. lauraw - July 10, 2010

I’m sure the list of things you don’t detect is long and varied.

ZING-ERRRR!!!

heh heh!

14. daveintexas - July 10, 2010

Tea partiers in Arizona included a black dude, with an “assault rifle”.

Motive that Don!


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