Categories
tax policy

Instead of a Tax Hike

The new Congress is in session and already there’s a push for a tax hike. Republican Senator Inhofe of Oklahoma says, “nothing is off the table.”

Of course the Democrats are chomping at the bit to raise … the gas tax. With gas prices having plunged so low, they see a green flag. But then, high prices at the pump are something they like. You know, to “save the planet.”

And across the aisle in the Senate, anyway, it’s not just Inhofe who’s sending up smoke signals to indicate a willingness to “bargain”; Senators Hatch (R‑Utah) and Thune (R‑SD) seem onboard. (Thankfully, House Republicans appear less enthused.)

To aid the cause, Inhofe calls the gas tax a “user fee.” Euphemistically. He has the tiniest of points: the modern “deal” has been to tax fuel and then use that revenue to pay for new roads and upkeep.

But recent congresses have been spendthrift, misusing the revenues on idiotic projects (hiking trails, bike paths, museums) and not so much on repair. In that context, the call for higher taxes almost looks responsible.

There’s a problem, though. Several.

You cannot go on rewarding government when government fails. They waste money? Why, give them more! Sheer folly.

Further, lower gas prices have meant an effective increase in incomes for regular people. Taxing that away, after so many bad years, is just cruel — to both the middle class and the poor.

Only a politician could call that “responsible”!

I have a modest alternative proposal: Devolve all federal roadways to the states; abolish all federal taxes on fuel. Let the separate states figure best how to fix “our crumbling infrastructure.”

Congress, after all, has failed. Miserably.

This is Common Sense. I’m Paul Jacob.

Categories
national politics & policies too much government

Brew Stronger Tea

The Tea Party’s House Republicans have begun work, outlining a “plan to attack the federal deficit. The result: A proposal to cut $100 billion,” which amounts, in the words of Tom Mullen, on LewRockwell​.com, to a mere “[s]even percent of the deficit.”

Disappointing. But wait, Mullen goes on, “if history has taught us anything, it is that this isn’t ‘just the beginning,’ with more substantial cuts to follow. This will be the high water mark as far as reduction in government spending is concerned.”

Mullen then offers an alternative venue: The states should unite in defiance of Washington, authorizing and defending citizens who withhold income tax payments until Congress balances the budget. He calls this “interposition.”

Radical, yes. But it will prove even less effective than our first House’s first foray.

Why? Many of the states are in just as bad a financial shape — or worse — than the federal union, and are presumably right now primping for federal bailouts.

What to do?

Brew stronger tea.

And throw it at Congress.

No state bailouts. The only thing the House can do, alone, is prevent more debt. Don’t raise the debt ceiling, and force President Obama and Democrats in the Senate to take budget cuts seriously — big budget cuts — now.

As I wrote a few days ago, let’s put the federal government onto a cash, pay-​as-​you go finance plan immediately. This would require, certainly, no small amount of courage from House Republicans.

Brew stronger tea.

This is Common Sense. I’m Paul Jacob.