9.04.2008

McCain and Fiscal Responsibility

Here’s an editorial discussing McCain’s talk about cutting pork and comparing it with his spending plans.  The author says McCain talks big about cutting spending, but if you look at his spending plans and compare it with his intended tax cuts (or even just a refusal to raise taxes) you are left with a growing deficit.  I’m not sure about this guy’s math (I have to look more into McCain’s specific proposals and compare them to Obama’s) but he raises the issue that I think may decide how I vote.  At the very least it will factor in to the decision.

I fully believe the Government already gets more than enough money, and it is incredibly wasteful.  If I had my druthers, Government spending would be cut and taxes would be lowered.  George Bush increased spending and cut taxes – hence our gigantic budget deficit and bloated national debt.  If McCain’s plans truly are cut-taxes-and-increase-spending then our debt will keep growing and our economy will not be the better for it.  As someone who desperately wants our Government to get smaller and for people’s attitudes to change re: Government’s role and responsibility, I don’t like having these two options:

1) Raise taxes and raise spending (Obama)

2) Lower taxes and raise spending (McCain)

 

I think both of the above approaches are bankrupt (hah) for different reasons, but neither are good.

3 comments:

MathiasTCK said...

It sounds like the eternal debate that happens in our political system. The thing about presidential promises though is that a lot of presidents do fine simply promising to reduce spending, or to reduce taxes, but do a very different thing in office.

Jackson said...

Right, that's what I"m whining about. They usually don't need to do much more than make promises. Whoever makes the prettier promises wins, whether or not they can deliver (or have any intention of delivering).

Jesse and Melissa said...

I'm sure you're aware of these facts, but you've alreay given me a place to put them to keep them off of my site so here:

Bush's Corporate Tax Cuts took effect in 2003 and since then corporate tax receipts as a share of the GDP have risen from ~1.25% to ~2.7%, which is the highest percentage the government has raked in 20 years.

Total government earning rose from about 16.4% to about 18.8% in that time, but I don't have the breakdown on what was income tax, corporate tax, tariffs, etc. What I do know is that individual income tax accounts for almost four times what corporate taxes do in federal income tax receipts.

For personal income tax receipts, the top 1% of wage earners (~$293,000+/yr) account for 53.25% and the top 10% (~188,000+/yr) account for 64.89%. Those tax revenues from rich people come from their earned income (wages), capital gains, and business income. All of those earnings have gone up under Bush's tax cuts because these people are more likely to invest money and take risks when there's less penalty, they make more money and so does the government.

Less government taxation and interference = more money for everyone, including the government.