Weatherford Democrat

Viewpoints

November 29, 2012

COLUMN: Focus on spending cuts, not tax cuts

— The tax cuts across the board, that President Harding used in the 1920s were very successful. The tax cuts of the ‘20s as well as every major income tax cut resulted in an effective shift of the tax burden from lower to higher income taxpayers. Economic growth in the ‘20s surged with the tax cuts and the unemployment rates averaged about 4 percent.

How can it be that a reduction in tax rates puts more money in the treasury? A surplus in the treasury allowed the government to reduce the debt by 25 percent. Most of you have heard of the Roaring Twenties, and the tax cuts were certainly a big part of what made it possible.

What caused the economic disaster of the 1930s? Could it be government meddling in the free market? In 1929, the Smoot-Hawley Tariff Act was being debated in Congress and President Hoover said that he would sign the bill. While the tariff may not have been the full cause of the Depression, it certainly did not make things any better. Smoot-Hawley did nothing to foster trust and cooperation among nations in either the political or economic realm during perilous times.

In the mid- and late-20s, the money was flowing freely and folks were borrowing money to invest in the markets — another case of greed just like the dot-com bubble and the housing bubble. Central banking advocates sell an illusion of monetary stability. A central bank can easily over expand or over contract the stock of money and credit. Canada did not have a central bank. Smoot-Hawley escalated the tariff barrier between Canada and the United States, yet Canada did not experience any bank failures or bank runs and their money supply declined by only 13 percent versus 29 percent in America. There is every reason to believe that a free banking system most likely would have prevented the disguised inflation of the 1920s and averted the geographical vulnerabilities along with the open secondary deflation characteristics of the 1930s.

Many of the world’s industrialized countries have scrambled to cut their corporate tax rates to stay competitive in the face of the economic crisis. The United States is not among them. Recently, the U.S. became the industrialized nation with the highest statutory corporate tax rate.

There is no doubt that our tax code is a total nightmare and needs to be fixed. Liberals have a one track mind — tax the rich. How about cut spending about 5 percent across the board and put a stop to government employees spending on lavish seminars and parties? How about cutting spending on projects, like the one called “Did Jesus Die for Klingons Too?” It only cost $100,000. That is only one among many wasteful nonsense adventures. Let us have real spending cuts, not just a reduction in proposed spending. When government says cut spending, they only intend to slow it ever so slightly.

The flat marginal rate income tax may never be enacted. The tenacity with which supporters of the progressive tax rate cling to this idea is indicative of their redistributionist philosophy. It also shows their refusal to face reality.

Richard Feuilly is a guest columnist. He is a retired ditch digger and a resident of Weatherford.

1
Text Only
Viewpoints
  • larry jones cropped:color NOW HEAR THIS: The fox and the hound, plus Max

    Almost without exception, most farms are protected to some degree by guard animals. Dogs and cats are most commonly used to defend against intruders and nuisance pests around the farmstead. In recent years with the proliferation of coyotes, many folks are using guard donkeys or llamas to protect their livestock.

    April 20, 2014 1 Photo

  • LETTERS TO THE EDITOR: Laws can’t be ignored

    Senator Harry Reid said, “We just can’t let people ignore the law.”

    April 20, 2014

  • 0912 one bday wm j kelly 2013 mug.jpg KELLY: What do you think?

    Not much is known about this Joseph’s life. The one thing I know for sure is that he was a very brave man.

    April 18, 2014 1 Photo

  • Hamilton, Lee.jpg HAMILTON: Government as innovator? You bet!

    Five years ago, the federal government spent $169 billion to fund basic research and development. This fiscal year, it’s down to $134 billion.

    April 17, 2014 1 Photo

  • LETTERS TO THE EDITOR: Showing respect

    My sister Robbie Benton’s funeral was Friday afternoon at White’s Funeral Home. The gravesite was outside of Mineral Wells. The respect shown by the good folks of Parker County and the surrounding area was overwhelming.

    April 17, 2014

  • larry jones cropped:color NOW HEAR THIS: Going on a wild goose chase

    In recent years I’ve written quite a bit about the introduction and negative consequences of non-native or invasive species. Fire ants, killer bees, English sparrows, Asian carp, feral hogs and others too numerous to list have forever changed our local ecosystem.

    April 13, 2014 1 Photo

  • LETTERS TO THE EDITOR: TV offers

    Have you seen those TV offers where they give a price for one product and then offer a second like items for-free? All you have to do is pay a separate shipping and handling charge for the “free” items.

    April 13, 2014

  • John Paul Carter-color.jpg NOTES FROM THE JOURNEY: What’s in a name?

    Names are important. When my son, Rush, (who’s named after my father) and his wife, Vanessa, were expecting their third daughter, I gave up on having a male namesake and suggested, in jest, they call her “Johnnie Pauline.”

    April 11, 2014 1 Photo

  • tiscione, lou.jpg TISCIONE: The Christian and the government

    The church in the Old Testament lived under a theocracy. That is, both the church and state were one. God anointed kings. Civil laws and religious laws were one and the same.

    April 11, 2014 1 Photo

  • larry jones cropped:color NOW HEAR THIS: Getting in the chicken business

    Anyone who is my age or older has heard the famous quote, “A chicken in every pot.” It is normally attributed to Herbert Hoover during his 1928 presidential bid.

    April 6, 2014 1 Photo

Must Read
Top News
House Ads
AP Video
US Proposes Pay-for-priority Internet Standards Wife Mourns Chicago Doctor Killed in Afghanistan FDA Proposes Regulations on E-cigarettes Kerry Warns Russia of Expensive New Sanctions Mideast Peace Talks Stall on Hamas Deal Cody Walker Remembers His Late Brother Paul Grieving South Korea Puts Up Yellow Ribbons Raw: Kerry Brings His Dog to Work Raw: Girls Survive Car Crash Into Their Bedroom Three U.S. Doctors Killed by Afghan Security Yankees' Pineda Suspended 10 Games for Pine Tar Colleagues Mourn Death of Doctors in Afghanistan Ukraine Launches Operation Against Insurgents Obama Reassures Japan on China Raw: Car Crashes Into San Antonio Pool Time Magazine Announces Top Influencers List Raw: Angry Relatives Confront SKorea Officials Bigger Riders Means Bigger Horses Out West Yankees Pineda Ejected for Pine Tar Deadly Fungus Killing Bats, Spreading in US