From: tk@pssparc2.mitek.com (Tom Kimball)
Subject: Re: What is a fiscal conservative?
Organization: OpenConnect Systems, Dallas, TX
Date: Tue, 17 Nov 1992 00:49:29 GMT

In article <BxLKoI.JwF@lincoln.technet.sg> ipser@solomon.technet.sg (Ed Ipser) writes:
>It is no wonder that the tax-and-spend policies of the Republicrats
>and Demopublicans keep driving up the debt. Fool me once shame on you,
>fool me twice shame on me.

And worst of all are the "everyone buys their own nuclear defense" policies of
the Liberanarchists.  At least we haven't been fooled even once in this case.


>In article <1992Nov11.081757.25504@europa.lonestar.org> tom@europa.lonestar.org (Tom Kimball) writes:
>>In article <1992Nov10.021714.506@nuscc.nus.sg> ipser@solomon.technet.sg (Ed Ipser) writes:
>>Lets see, your theory is that an increase in government taxation results in 
>>an increase in the deficit.  I'm not going to refute this, because my guess
>>is that 99% of usenet can already spot the flaw in your logic.
>
>It is not merely a question of theory or logic but of historical record:
>
>  The proponents of higher taxes accept as a matter of faith that deficits
>  will fall if taxes are raised.  But recent historical experience at both
>  the state and the federal levels demonstrates convincingly that there is no
>  such iron law of politics.  Indeed, a sizable body of statistical and
>  anecdotal evidence shows that trying to reduce deficits by increasing taxes
>  is an exercise in futility:  Lawmakers invariably respond to higher taxes
>  principally by raising spending by an amound about equal to the additional
>  revenue, thereby leaving the deficit fundamentally unchanged.
[deleted]


All these theories by rightwing economists may sound good but they are all
irrelevant.  All we have to do is require that spending cuts and tax 
increases be combined into the same deficit eliminating bill.  After the
debt is eliminated by all means lower my taxes.  


>>  What may not
>>be as obvious to some people, however, is that the REVERSE of this theory
>>is in fact true.  That is, an increase in the deficit is a guarantee that you 
>>will pay more taxes over the long run.  If you doubt this, check out how much of
>>your taxes now go towards paying interest on debts acquired in past years. [One 
>>quarter of the total!]
>
>This is absolute nonsense. It doesn't matter if 100% of your taxes go
>toward financing the debt. 

Unless you prefer that your taxes are not doubled or trippled at that point
to make up for it.  Or that the government has no money to continue its
existance.


>If your taxes are not going up, they are
>not going up.  What is going to happen if taxes are held constant or

We won't have a choice.  The laws of mathematics dictate that we cannot
keep a deficit around forever.


>even reduced (setting aside the difference between rasing tax rates
>and increasing tax revenues) is that the politicians will finally have
>to make some hard choices about what things government should be
>involved in and what things it should not.

If you are advocating defaulting on the debt as one of the "hard choices", 
don't even think it.  This is why the Libertarians are not trusted with
the national security.


>>>There are still some people who actually
>>>wish the government would take more of their money but they are increasingly
>>>in the minority. 
>>
>>The people who seem to want the government to take more of their money are
>>the supply-siders, since that policy insures that our total lifetime taxes
>>will be increased.
>
>More rubbish. What you are arguing is that if we cut taxes now, we will have
>to raise them later (I assume). Not only does this fly in the face of logic
>(why would people take a tax cut now only to agree to an increase later) but

You may prefer an economic catastrophie instead, but most people will want
to avoid one.



>>>The federal government has simply become a big money sink.
>>
>>To be more specific, the 25% of government revenue that goes towards paying 
>>interest on the national debt is a big money sink.
>
>It is probably the only portion of government spending that is not wasted.

Statements like this are why the Libertarians are not taken seriously.


>I look forward to the day when the proportion pushes toward 100%.

So you look forward to the day when your taxes are doubled or trippled.
-- 
Tom Kimball 	OpenConnect Systems	
          	2711 LBJ Freeway, Suite 800
tk@oc.com      	Dallas, TX  75006	
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