From Deseret News archives:

2 recent tragedies have tax, energy implications

Published: Thursday, Aug. 16, 2007 12:24 a.m. MDT
 |  E-MAIL | PRINT | FONT + - 
Two recent tragedies — in Minnesota and in Utah — have held the nation's attention. The implications of these tragedies also deserve attention.

Those politicians who are always itching to raise tax rates have seized upon the neglected infrastructure of the country as another reason to do what they are always trying to do.

Those who live by talking points now have a great one: "How can we fight an expensive war and repair our neglected infrastructure without raising taxes?"

Plausible as this might sound, tax rates are not tax revenues. The two things have moved in opposite directions too many times, over too many years, for us to take these clever talking points at face value.

This administration is not the first one in which a reduction in tax rates has been followed by an increase in tax revenues. The same thing happened during the Reagan administration, the Kennedy administration and the Coolidge administration.

Tax rates and tax revenues have moved in opposite directions many times, not only at the federal level, but also at state and local levels, as well as in foreign countries.

Story continues below
How many times does it have to happen before people stop equating tax rates with tax revenues? Do the tax-and-spend politicians and their media supporters not know any better — or are they counting on the rest of us not knowing any better?

Even if we were to assume that higher tax rates will automatically result in significantly higher tax revenues, the case for throwing more money at infrastructure would still be weak.

Some of the money already appropriated for maintaining and repairing infrastructure is being diverted into other pet projects of politicians.

Money supposedly set aside for repairing potholes and maintaining bridges is diverted to the building of bicycle paths or subsidizing ferries or buses. These other things have more of a political payoff.

Not only are there well-publicized ribbon-cutting ceremonies for building something new, many of these new things can be named for the politicians who had them built. Thus there are all sorts of government structures named for Sen. Ted Stevens in Alaska and for Sen. Robert Byrd in West Virginia.

But nobody names pothole repairs for anybody or puts any politician's name on the rivets used to repair an existing bridge.

Moreover, nobody blames a politician when a bridge collapses years after he put his name on some government building with money that could have been used to make bridges safer longer.

If the collapse occurs on somebody else's watch, it will be somebody else's political problem.

Recent comments

You are using selective logic. If revenues have increased why are we...

Jack | Aug. 16, 2007 at 2:45 p.m.

In reality, the caribou are not inconvenienced at all. Oil can be...

Harry | Aug. 16, 2007 at 12:58 p.m.

previousnext

Latest comments

Hall breaks BYU record with win

Unsportsmanlike?!? Oh, are you talking about attempting to deceive the...

'The Blind Side' akin to 'comfort food'

I just got back from seeing this good movie, It have been waiting to see it,...

Text proves Shroud of Turin real?

The Shroud of Turin reflects wounds consistent with the biblical account of...

4A: Timpview wins 4th in 4 years

On another blog I predicted 24-7 Bingham over Davis saying that it would be...

Glenn Beck to enter politics?

Because he cares about this country and its citizens everyone of them, and he...

3A: Juan Diego's last-gasp play

Two years in a row! Dang you Juan Diego! We'll see you next year.

Utes crush Aztecs 38-7

Take your meds man, the delusion is running wild in your little brain. Utah...

This movie was terrible! John Cussack is a great actor but did really nothing...

Hey, Springville played Timpview for years and they never complained about...

Y. coach Hill up for Portland State job

Dear Portland Stater: Relax! It's not like Portland State will ever be on...

Advertisements