The fiscal year 2013 when the national elections are over for awhile, we will enter a new phase of federal oversight.
If I can still afford to own a keyboard, I may spend next year posting on the subject of TaxAmegeddon. The deep federal revenue reductions since 2006, coupled with the unregulated capitalism since the Clinton years, wed to the "stimulus" package(s) of the last two administrations are now to bring home a set of eye-popping bills.
Next year will begin the Taxasatrophe. The announcement of tax rate cuts for individuals and corporations is now accompanied by the assertion that there will be fewer loopholes. People will actually have to pay the lower rates, producing more revenue. This delusion begs, well, several questions:
- All those tax lawyers and Wall Street folks who are uber-paid to devise ways to get their clients out of taxes, you know them, the 1% Defenders; what are they going to do, join the Peace Corps? Do you really think they will not devise ways to get their clients out of the lower rates, as they do so effectively now at the "higher rates?"
- If federal regulatory agencies are going to get serious about collecting taxes at the new, more dynamic lower rates, what in the name of Paul Volker are they doing right now? Resting for the race?
- Please, tell me, what services are going to be cut? There are no effective tax cuts without service cuts. What services will be going? Social Security? Aid to Israel? Medicare? Roads? Defense? Homeland Security? Bridges to Nowhere? Congress?
- Subsidies are disguised services. What subsidies are going?
- Does anyone remember Smoot-Hawley? Gramm-Rudman?
The illusion of tax cuts works on the American voting public for the same reason negative attack ads work so well. Each one depends on our surface emotions, things like fear, greed, anger, envy. They will stop working when we demand serious politicians. We will demand serious politicians when we become serious people.
Opinions expressed here are mine alone.