Millions of Americans observed Income Redistribution Day on Wednesday, spending countless hours and dollars first to figure and then file their federal income taxes. Of course, personal income taxes barely scratch the surface of paying for the cost of our rapidly metastasizing government. Furthermore, who knows much government really costs? Certainly not those in government.
The Congressional Budget Office (CBO) released revised numbers on the so-called stimulus passed in February, saying the bill will cost taxpayers $356 billion, not the originally estimated $189 billion. Off by just a mere 53 percent. As Investor's Business Daily notes, "[T]here are two immutable rules that govern federal programs: They will always cost more than lawmakers and presidents tell us they will, and once they're in place, they'll never go away."
The CBO projects a deficit of $1.85 trillion for fiscal 2009 -- nearly quadruple the previous annual record. We're more than halfway there, too. The Treasury Department announced that through March, the deficit is just shy of $1 trillion.
Meanwhile, Citizens Against Government Waste released its 2009 Congressional Pig Book Tuesday, just in time to remind taxpayers that while the number of unconstitutional earmarks in the 2009 budget declined to 10,160 from 11,610 in 2008, the dollar amount for those earmarks increased from $17.2 billion to $19.6 billion. And the Tax Foundation estimates that Tax Freedom Day, that calendar date upon which Americans will have earned enough to pay for all federal, state and local taxes, occurred on 13 April this year -- meaning citizens must work 103 days to pay for the cost of government. In 2008, that day was 21 April. On the other hand, if government operated on a balanced budget, the additional taxes would require that Americans work exclusively to fund the government until 29 May.
As for the revenue side, the government overestimated tax receipts. For example, in March 2008, regular corporations sent $32.6 billion to the IRS; in March 2009, that number was $3.4 billion. In fact, corporate income tax receipts are down 57 percent so far this fiscal year.
One result of such a shortfall almost certainly will be a tax increase on everyone. Martin Sullivan, a former economic aide in the Reagan administration, points out, "You just simply can't tax the rich enough to make this all up." Ronald Reagan himself observed, "Raising taxes will slow economic growth, reduce production, and destroy future jobs, making it more difficult for those without jobs to find them and more likely that those who now have jobs could lose them." Unfortunately, that's wisdom President Barack Obama will all too quickly throw under the "Hope 'n' Change Express."
But yet the Chief Occupier will deny all of this and continue to spread his “Big Lie”.
"For too long we've seen taxes used as a wedge to scare people into supporting policies that actually increase the burden on working people instead of helping them live their dreams. That has to change, and that's the work that we've begun. We've passed tax cuts that will help our economy grow. We've made a clear promise that families that earn less than $250,000 a year will not see their taxes increase by a single dime. We're giving tax relief to the Americans who need it and the workers who have earned it. So, on this April 15th, we're reminded of the enormous responsibility that comes with handling people's tax dollars and we're renewing our commitment to a simpler tax code that rewards work and the pursuit of the American dream." --The ObamaPrompter
And to make it sound even better he had this to say on Income Redistribution Day: "We cannot rebuild this economy on the same pile of sand. We must build our house upon a rock. We must lay a new foundation for growth and prosperity -- a foundation that will move us from an era of borrow and spend to one where we save and invest." --Barack Obama
Memo to BO: The foundation of our nation -- the Constitution and free-market capitalism -- is just fine. The fact that the "new foundation" will be built on debt owed by generations not yet born is the problem. I will add that until all of the borrow and spend is repaid there is no way to save and invest. Well, unless you believe the Big Lie followed by more lies and capped off with another lie yet to come.
Hattip: Patriot Post