Budget Surplus Demands a Tax Cut
by


This first appeared in the
North Hills News Record

The news this week made it abundantly clear we're overtaxed and even the president is running out of excuses not to return some of those confiscated dollars. I've always said we're taxed too much, but it's a tough argument to make when the Treasury bleeds red ink. But it's not anymore.

Last year, the bean-counters projected 1999 would close with $117 billion worth of red ink. Thanks to increases in industry productivity and Alan Greenspan's unrelenting pursuit of low inflation, which have the same effect on the economy as a tax cut, the Treasury coffers have ballooned.

The estimates just released, if you're inclined to believe so-called experts who can't accurately predict budget figures even 6 months in advance, say we'll finish this year with a small surplus. Ten years from now these experts say the surplus will be $3 trillion.

Now before anyone starts making a wish-list, it needs to be noted that all tax revenue--including social security funds, flows into the general Treasury. Factor out committed social security dollars and the ‘surprise' surplus turns back into at least a $4 billion deficit.

Of course, even these bogus budget surpluses are conditional. They'll only happen if Clinton signs and Congress enforces the spending caps that were put in place two years ago.

That would require a decade of federal spending discipline spanning four congressional and two presidential elections. In other words, it won't happen.

Once tax dollars are collected, Congress spends them. Nothing is saved. Ever.

That's why we need a tax cut. And I'm not talking about a few nip and tucks to the tax code. I'm talking about a 20 percent across-the-board tax cut.

That would put money back into the hands of the people who earned it where it can be used to continue this booming economy.

If you're still basking in some starry-eyed belief that times have changed and things will be different, check out some of the most recent spending proposals that are being run through the public opinion polls.

Clinton and his cohorts in Congress (both Democratic and Republican) are going to use those surplus dollars to launch the biggest entitlement binge since the 1960's. They'll tell us how irresponsible a tax cut is--think of the children!

The best example of fiscal squander is Clinton's promise to expand Medicare to include virtually free prescription drug coverage for the elderly. Any first year economics student will tell you that creating or expanding entitlements like this only expands costs.

Of course, most people don't care. To them, these government programs just seem like the right thing to do and a progressive nation like ours can surely afford them.

Playing off of those sentiments several months ago, Clinton arrogantly quipped while discussing the unexpected budget windfall, "We can give it all back to you and hope that you spend it right but if you don't spend it right..."

Then what Mr. Clinton? Do you assume only bureaucrats, elected officials and policy wonks know how to spend my money.

Today, promoting tax cuts and opposing government spending plans only earns you the reputation of being greedy and uncaring. Compassion is defined by how much stuff you can force other people to pay for. The reality is just the opposite.

© Copyright Deborah A. Ayers 1999. All rights reserved.