Monday, August 09, 2010

Hypocrisy on Tax-and-Spend

Hypocrisy in politics is like sand at the beach -- it's so plentiful and expected that we don't even notice it, until we start trying to walk on the beach and the sand burns our toes.  Let's take the example of the right-wing anti-government mantra that is propelling the Tea Party movement to national prominence (again), spurred on by right-wing media.  After reading this column in the New York Times, from an admittedly liberal economist who is writing in a liberal media outlet, I am convinced that this anti-government agenda is not only bad for the U.S. but hypocritical as well.  I was watching Meet the Press a little bit on Sunday, and I watched as a Republican Congressman parried questions from David Gregory about whether extending the Bush-era tax cuts on wealthy Americans matched with Republicans' stated goal to reduce the deficit.  Here's a link to the program and the transcript of the exchange:

"MR. GREGORY:  Let's talk about it.  It's interesting, you talk about the importance of cutting the debt, the importance of cutting government spending, and you worry about the Democrats raising taxes.  The Bush--the Obama administration wants to extend the Bush tax cuts only for those who make less than $250,000, and he wants to let them expire for those wealthy Americans making more than that.  You're opposed to that.  You want to extend the tax cuts, and the Republican leadership does.  But Alan Greenspan, who was on this program last week, chairman of the Federal Reserve, said that's the wrong idea.  Here's what he said. (Videotape, last Sunday)
DR. ALAN GREENSPAN:  Look, I'm very much in favor of tax cuts, but not with borrowed money.  And the problem that we've gotten into in recent years is spending programs with borrowed money, tax cuts with borrowed money, and at the end of the day that proves disastrous.  And my view is I don't think we can play subtle policy here.
MR. GREGORY:  You don't agree with Republican leaders who say tax cuts pay for themselves.
DR. GREENSPAN:  They do not.
(End videotape)
MR. GREGORY:  Leader Boehner, he puts it right to you.
REP. BOEHNER:  The only way we're going to get our economy going again and solve our budget problems is to get the economy moving, get more people back to work where they can care for their own families and begin to expand the tax rolls to bring more revenue to the federal government.  And what we have to do is we have to get our arms around the spending spree that's going on in Washington, D.C.
MR. GREGORY:  But Leader Boehner...
REP. BOEHNER:  That's the only way we solve the budget problems.
MR. GREGORY:  ...I'm sorry, you're--that--you're not, you're not being responsive to a specific point, which is how can you be for cutting the deficit and also cutting taxes, as well, when they're not paid for?
REP. BOEHNER:  Listen, you can't raise taxes in the middle of a weak economy without risking the double-dip in this recession.  President Obama's favorite Republican economist, Mark Zandi, came out several weeks ago and made it clear that raising taxes at this point in, in the economy is a very bad idea.
MR. GREGORY:  But do you agree that tax cuts cannot be paid for...
REP. BOEHNER:  You cannot balance the budget without a...
MR. GREGORY:  But tax cuts are not paid for, is that correct?
REP. BOEHNER:  I am not for raising taxes on the American people in a soft economy.
MR. GREGORY:  That's not the question, Leader Boehner.  The question...
REP. BOEHNER:  And the people that the president wants to tax...
MR. GREGORY:  ...is, are tax cuts paid for or not?
REP. BOEHNER:  Listen, what you're trying to do is get into this Washington game and their funny accounting over there.  You cannot get the economy going again by raising taxes on those people who we expect to create jobs in America and to get the economy going again.  If we want to solve the budget problem, we've got to have a healthy economy and we have to get our arms around the runaway spending that's going on in Washington, D.C.
MR. GREGORY:  I just want to clarify this.  I mean, if you--I'm relying on what Chairman Greenspan said.  Maybe--if you're accusing him of funny Washington games.  He says that tax cuts that aren't paid for are not--they are not cutting the deficit, that they are not actually paid for, it's borrowed money.  And so do you believe tax cuts pay for themselves or not?
REP. BOEHNER:  I do believe that we've got to get more money in the hands of small businesses and American families to get our economy going again, and the only way to get that economy going again is to do that and to get our arms around the spending.
MR. GREGORY:  All right.  One of the ways you talk about getting your arms around the spending was something you suggested back in June, and that is that Social Security, the retirement age, ought to be raised to the age of 70.  Is that something that the GOP will campaign on in the fall?
REP. BOEHNER:  David, I think it's time for the American people to have an adult conversation about the problems that we face.  These entitlement programs serve tens of millions of Americans, and they're critically important.  But we also know that these programs are, are unsustainable in their current form.  And I really do think it's time that we sit down and we talk to the American people together about how we solve them.  And I think we need to bring Democrats and Republicans together in order to solve this problem.
MR. GREGORY:  And so you favor raising the retirement age?
REP. BOEHNER:  David, there are a lot of options about how you solve this, but I don't want to get the cart before the horse.  I think it's important to have this conversation.  It's going to be a difficult conversation, but it's time to have it and it's time to come up with some solutions that are done in a bipartisan way to help address these problems."
I know this is a long post, but I'm interested in the way this Republican refused to answer direct questions about how to reduce the deficit.  He would rather carp about the problems than propose real solutions, and he knows the tax cuts won't reduce the deficit.  But he hides behind small businesses, argues that they are holding back due to the President's agenda as opposed to real economic conditions, and tries to play the Washington game of pinning blame for problems on the administration while dodging specific questions about solutions.  It's tactical maneuvering at best and hypocrisy at worst.  It's cynical posturing that misleads Americans into believing the government is too big.  As Paul Krugman points out, when state and local governments are factored in, government may be too small right now to solve our national problems.

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