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View Diary: New GOP House rules pave the way for more tax cuts for wealthy, slashing spending (102 comments)

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    •  Birthers and Truthers, Meet the "Free Lunchers" (1+ / 0-)
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      vigilant meerkat

      The GOP and it's sad decline into obsessive tax cut dementia (OTCD) continues.  

      They've gone from cranky penny pinchers to the Free Lunch Wagon.

      They are relying again on the political magic of tax cuts uber-alles, or what used to be called "supply side" economics.  

      They went from thinking of themselves as the "adults" in the room to being unable or unwilling to bypass any chance to turn policy into politics no matter how destuctive, short-sighted or irrational.

      They believe that cutting taxes is always good and spending for anything except the military-industrial complex, is bad (but the more people it helps, the worse spending becomes for the GOP.)  

      Martin Wolf explains it well:

      ...Supply-side economics transformed Republicans from a minority party into a majority party. It allowed them to promise lower taxes, lower deficits and, in effect, unchanged spending. Why should people not like this combination? Who does not like a free lunch?"

      How did supply-side economics bring these benefits? First, it allowed conservatives to ignore deficits. They could argue that, whatever the impact of the tax cuts in the short run, they would bring the budget back into balance, in the longer run. Second, the theory gave an economic justification—the argument from incentives—for lowering taxes on politically important supporters. Finally, if deficits did not, in fact, disappear, conservatives could fall back on the "starve the beast" theory: deficits would create a fiscal crisis that would force the government to cut spending and even destroy the hated welfare state.

      In this way, the Republicans were transformed from a balanced-budget party to a tax-cutting party. This innovative stance proved highly politically effective, consistently putting the Democrats at a political disadvantage....

      But no, it is not deficits themselves that worry Republicans, but rather how they are caused: deficits caused by tax cuts are fine; but spending increases brought in by Democrats are diabolical, unless on the military.
      ...

      Wolf went on to predict that in the new Congress, Republicans will not only push for permanant extension, but deeper tax cuts.

      Think back on the Bush years and on the last 2 years of Republican tactics and then think of the worst the Republicans could do between now and November 2012.  

      Now think again after reluctantly but finally, erasing "inconceivable" from your vocabulary.

      http://blogs.ft.com/...

      Bipartisanship for its own sake is no virtue. Partisanship for the sake of what is right is no vice.

      by Into The Woods on Mon Dec 27, 2010 at 03:26:24 PM PST

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