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I went to one of those tea-party tax protests last week and found it didn't fit the crudest media stereotypes. They were friendly, not a bunch of whack jobs in training for the militia, as they are sometimes portrayed.
Seattle Times staff columnist
The tea partiers aren't crazy. Maybe they're just living in an alternate universe.
I went to one of those tea-party tax protests last week and found it didn't fit the crudest media stereotypes. They were friendly, not a bunch of whack jobs in training for the militia, as they are sometimes portrayed.
The ones I met didn't even seem all that angry.
But: I do wonder if the tea partyers and I live on the same planet.
For instance, several speakers inspired the crowd with stories about how the most courageous and noble people left are the capitalists. Because they bravely walk the road of struggle against a powerful, socialistic bureaucracy.
And I'm thinking — didn't the capitalists just nearly destroy capitalism? Only to be saved by the socialists?
Didn't all that happen just a year and a half ago?
Then there's the matter of taxes.
"Born Free, Taxed to Death," read one tea-party sign. "Tax Slaves Unite," said another. "Welcome to France," read a third.
That was a strong theme — the way our Marxist government incessantly gropes in our pockets for more of our hard-earned money.
A cry went up: "Taxes Suck!"
Yes they do. But here's something else about taxes, at least the federal kind. Did you know that total federal tax receipts, as a percentage of the size of the economy (gross domestic product), are now the lowest in 60 years?
You have to travel back to 1950 for a time when the feds sucked so little of the economy up in taxes. We now pay only 6.4 percent of GDP in individual income taxes, more than a third lower than 10 years ago. Corporate income taxes are the lowest since 1936.
(To see this data, go to the U.S. Government Printing Office Web site of historic budget tables, www.gpoaccess.gov/usbudget/fy11/hist.html, and click on Table 2.3.)
These factoids won me no love at the Taxed Enough Already (TEA) rally.
But they're true. Multiple rounds of tax-cutting since 2000, spanning both Republican and Democratic presidents, have been so thorough that half of Americans now pay no individual income taxes.
Hurray! We're not France after all. We're Monaco!
OK, not exactly. Last year 14.8 percent of the U.S. economy went to all federal taxes (which includes Social Security and Medicare taxes). That's hardly nothing, but it's a lot less than a decade ago.
So what, exactly, are these protesters protesting?
Bryan Suits, a talk-radio host on conservative AM station 570 KVI, is, he says, "one of the angry taxpayers." He spoke at last week's rally. I told him I don't follow the tea-party logic, so he agreed to be a guide.
It's the spending, stupid, he said. Suits, to his credit, acknowledged taxes have gotten lower. What rankles him is the way the money is used. The bailouts. The huge stimulus package. The new entitlement program created by the health-care bill.
"If I paid only one dollar in federal taxes, I'd still be outraged by the AIG bailout or the GM takeover," he said.
It's also the reckless and unsustainable deficits.
All right, now we're getting somewhere. I'm with Suits on that last part about the deficits, so much so I could just about sign up for the tea party.
Or I could if the tea party were serious.
The trouble is, they don't have much appetite for cutting Medicare, Social Security or military spending. They want even lower taxes. Put these views together and the math says the budget can't balance. Even if you eliminate 100 percent of everything else.
So what they fall back on are old gimmicks, such as a balanced-budget amendment to the Constitution.
The tea party's focus on deficits is right on. But it needs to get real. It needs a Ross Perot-like figure to spell out an honest plan — one that's probably going to have both tax increases and spending cuts (as Bill Clinton pushed through).
Also, drop the red-scare rhetoric. And run as fast as you can from bumper-sticker simpletons like Sarah Palin.
Otherwise, this tea party's stuck in Wonderland.
;gets us out of a depression. National Debt Graph: Bush Goes for WWII Stimulus |
Click image below to enlarge. |
Note the run-up in debt starting in 1942. That's equivalent to $10 trillion today. That pulled the economy out of the great depression and into high gear to win World War II. |
How We Get Out of the Great Depression II By Steven Stoft, March 2, 2009 Here we go again: Hoover got us in, and WWII got us out. Bush got us in, and to his credit, started trying to get us out. Though, mostly he threw money at bankers. In the Great Depression, Roosevelt tried deficit spending, but he was too timid. Then he stopped in 1937 and the economy nose-dived. It took the humongous deficits of WWII to pull us out of the Great Depression. Those deficits blasted the economy from depression into overdrive. Of course after the war, we had to pay off a huge national debt, but during that time, from 1946 to 1980, the economy was mainly quite prosperous. We hit a bad recession when Reagan took office, and his early deficit spending made sense (though he didn't know it). But then he continued to drive up the debt through the boom years that followed. That didn't make any sense. We are now headed into the worst slump since 1938, and you better hope Obama can fix it because that was not a pretty time. Unfortunately, as in the Great Depression, the extreme conservatives would rather trash the country than have our government succeed. They are much worse than Bush. The main thing to remember is that, with consumer spending going down, business is going to lay people off—not hire them. You can't blame business for this. It's just a vicious cycle that the economy gets into. And you can't blame consumers for not spending in bad times. The only way out of this, if we don't want to wait 10 years, is for the government to spend, pay unemployment insurance, or give tax breaks to people who will spend (not the rich). Of course there's also the problem of the banks. Obama should stop saving the bankers, and just take over the bad banks. Once they're working they can be sold back to the private sector. |