The basic problem with the proposals offered is that they are anti-growth. The NY Times treats federal receipts as residing within a vacuum without considering the effects of the mechanisms by which revenue is generated. The twentieth century is a study in the destruction caused by ill-advised federal tax policy. Federal revenues do
increase when the federal share of individual private transactions is
lower, and they do
decrease when the federal share is
higher.
By this exercise, the NY Times appears to be constructing an argument that balancing the federal budget is not possible, which is not true, and that doing so is unnecessary anyway. Of course, the question of what the proper role of government is and how our answer affects the national budget is completely off the table. There is also the assumption that the wealthy
ought to be taxed substantially, but this is one of the biggest job-killing ideas. Progressive taxation, as appealing as it may be,
removes capital from the economy, and all private-sector jobs are created by capital. In terms of its ultimate effects, progressive taxation is the worst form of regressive tax policy because the effects–loss of jobs, economic stagnation, etc.–are never traced back to the source but are blamed on some group’s or politician’s evil motives.
I recommend perusal of the website of the
Acton Institute. The president of the Acton Institute is Father Robert Sirico, and I especially recommend his contributions there.
Cheers,
FL