The Gang of Six’s $3 Trillion Tax Hike

Democracy and Power 108:  Obfuscation

Wherever politics intrudes upon economic life, political success is readily attained by saying what people like to hear rather than what is demonstrably true. Instead of safeguarding truth and honesty, the state then tends to become a major source of insincerity and mendacity. – Hans F. Sennholz

The politician’s speech is seldom precise or logically reasoned.  Seeking a favorable image, the politician talks in generalities, exaggerates and obfuscates.

 

 

The Gang of Six’s $3 Trillion Tax Hike

Senator Kent Conrad said the Gang of Six’s plan would, “find net tax relief of approximately $1.5 trillion.”   What Conrad did not say is that tax revenues would increase by $3 trillion.  Why the discrepancy?  Conrad knows tax increases of $4.5 trillion will occur.  The law has been passed.  Thus, Conrad’s “relief” is a $3 trillion revenue increase instead of a $4.5 increase.  Conrad is deliberately deceiving the public.

Also, the “Gang of Six” claims to reduce billions in taxes by eliminating the onerous alternative minimum tax (AMT).  Wrong.  Historically, the AMT is repealed every year because it is a detested burden on millions of American taxpayers.  Thus, this claimed-tax cut is non-existent.

As to spending, except for freezing federal pay, terminating long-term care legislation and altering the consumer price index, the “Gang of Six” only proposes that various congressional committees reduce spending billions of dollars.

In reality, the “Gang of Six” extracts a $3 trillion tax increase with no spending cuts.  This is politics as usual in D.C. – a continuation of the tax increases and spending-cut illusions that have created our debt crisis.

Wretchedly, the “Gang of Six’s” financial plan perpetuates America’s decline.  Equally harmful, these deceits and deceptions are morally wrecking America.  Instead of safeguarding truth and honesty, the state then tends to become a major source of insincerity and mendacity.