Largest Tax Increase In History!
Tax and Spend
by Robert D. Novak - March 29, 2007 - Townhall.com
Following the example of their Senate brethren last Friday, House Democrats will adopt a budget resolution containing the largest tax increase in U.S. history amid massive national inattention.
Nobody's tax payment will increase immediately, but the budget resolutions set a pattern for years ahead. The House version increases non-defense, non-emergency spending by $22.5 billion for the next fiscal year, with such spending rising 2.4 percent in each of the next three years. To pay for these increases, the resolution raises taxes close to $400 billion over five years -- about $100 billion more than what the Senate passed.
It had been assumed the newly majoritarian Democrats in Congress would end President Bush's relief in taxation of capital gains, dividends and estates. What came as a surprise was the simultaneous rollback in Bush-sponsored income tax cuts. This represents Democrats' belief they can politically survive this long-term commitment to bigger government. Here is an audacious effort to raise the banner of fiscal responsibility while increasing spending and taxes.
Tax and spend has always been the matra of those who are committed to socialism. That commitment is based on a failure to understand economics. The leaders of the democratic party are evangelical believers that wealth in a society is unrelated to economic policy. They are socialists. However they deny they are socialists and for many that is good enough.
It is simply amazing that this tax increase is about to happen and millions for whom it will be a disaster don't see the consequences. Someone needs to buy a few copies of Hayek's "The Road to Serfdom" and pass them out. Jimmy Carter was a socialist and with a democratic congress he got the same type program passed back in the 70s. The stagflation Carter caused is about to return. Why do we have to learn this lesson again. Wasn't one experience with the consequences of socialism in America enough? Reagan saved us from Carter's socialist agenda last time.
Who will save us this time?