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The subjects of deficits and taxes in the United States are interesting subjects; the elephants and donkeys in politics accuse each other of fiscal recklessness, leaving a huge debt on our generation and those yet unborn. There is truth in both their claims. The Democrats are correct in noting that the deficits are highest during Republican administrations, while decreasing under Democratic ones. Republicans are right on the money about criticizing Democrats social spending, which leads to an increased tax burden on Americans (notably those who are 'rich', a term both have poorly defined). The thing I've noticed is the following: Democrats frame the debate exclusively as a deficit issue, while Republicans frame it exclusively in terms of taxes. Little do the two realize (moreso the Republicans), they are treating causally related problems as entirely separate issues.

Democrats like to rub their lower deficits in the Republicans face, while Republicans wonder why the deficit decreases under Democrats. At first blush it may seem to be a paradox, but really isn't after a degree of thought. The morality of taxes aside, Democrats are able to keep the deficit down (even eliminate it completely) precisely because of higher taxes. Deficit spending, as we all know, is spending in excess of revenue. By increasing taxes, Democrats reduce the deficit by increasing revenue. The Democrats may spend extravagantly, but at least they are generally able to finance it.

The reason that deficits increase under Republicans is because they don't reduce correspondingly with the reduced revenues. The reasons for this are quite clear; everybody likes tax cuts, but hardly anyone likes it when the government cuts programs. Government people especially; it means cuts in salaries and elimination of jobs. Republicans also are reluctant to cut spending in defense, which would weaken their “tough” image. The disconnect between the taxes and programs is largely Republicans doings-and partly ours, sadly. Both of us decry taxes as theft, and that is true as far as it goes. Where we screwed up is giving the impression that the taxes aren't used for anything except as being thrown in a big money hole. Truth is that tax money is used for things-not for good things, but they are used.

Given that we pay taxes, there are only two deficit-neutral ways to spend money; one is too increase taxes to match expenditures, the other is to reduce expenditures along with taxes. In either case, one breaks even. The Democrats operate under the first premise. Republicans, however, operate on a different one; maintain expenditures with reduced revenues. That is suicidal. The Republican Party is hardly a valuable ally in Congress. The last position, reducing expenditures and taxes, is what libertarians really stand for.

Be Seeing You.