The Big Republican Lie on Tax Cuts

[treesahquiche]

Republicans have repeated the lie that tax cuts are always good for the economy so often that all of Washington seems absolutely convinced that it's true. The conventional wisdom is so established on this that all a Republican has to say is, "Everyone knows you don't raise taxes in the middle of a recession..." Or in good times or in mediocre times or ever. All tax cuts are always good.

Republicans add another layer of absurdity to this as they say that tax cuts always lead to more revenue for the federal government because of supply-side economics. The economy expands, people make more money and the government collects more in taxes even though it takes a smaller percentage. Great theory -- how about if we cut taxes down to 1 percent? Would the government still get more revenue?

The question isn't whether tax cuts or tax increases are always the right answer. The question is at what level of taxes do we stimulate the economy, collect enough revenue to run a functioning government and let people keep as much of their income as we can. No one, not even the world's biggest liberal, wants to pay more in taxes personally. We just want to find the right balance so that everyone wins.

( Click for the full story. It's worth it. )

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This isn't news to anyone who took AP Macroeconomics in high school or Introduction to Macroeconomics and got a passing grade. But for some reason, Americans fall for the "lower taxes = good" bullshit all the time. Even the smart ones, sometimes!

It isn't about low taxes or high taxes: it's about finding the right balance so that the government is able to maintain programs that everyone agrees are beneficial (like fire departments -- if you don't like getting taxed so that the fire department in your township can function, you can read about what happened to the Cranicks), and investment -- both public and private -- happens, while still making sure that private individuals and their families have enough to live reasonably comfortable lifestyles.

The fact is, tax cuts don't encourage us to spend, and our GDP lives and dies by how much spending happens. At least when we're taxed, we're forced to spend and do our part to keep our economy afloat. It may not be very pleasant, but those are the facts, unless you decide to renounce civilized society and become a hermit in the woods or try your hand at living in Somalia.

US concern for wife of Nobel winner Liu Xiaobo

[mistersandman]

The United States has called on China to end the apparent house arrest of the wife of Nobel Peace Prize winner and jailed dissident Liu Xiaobo.

Speaking to the BBC by telephone, Liu Xia said she was unable to leave her home.

"Liu Xia's rights should be respected, and she should be allowed to move freely without harassment," a spokesman for the US embassy in Beijing said.

The award honouring Mr Liu has drawn a furious reaction from China.

Beijing has called it an "obscenity" that went against the principles of the Nobel prize.

Liu Xiaobo was a key figure in the pro-democracy protests in Tiananmen Square.

( Read more... )

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Hey, remember when Wen Jiabao said that freedom of speech is indispensable?  How he is disappointed that the rate that social reform has dragged behind economic reform?  It looks like he lied.

The Nobel Committee made a strong statement with the selection of Liu Xiaobo, that statement being. "Hey China, it's great that you have rockets and World's Fairs and half a billion people uplifted from abject poverty, but there are significant problems with your government!"

It would appear China's response is that favorite playground gambit, "LA LA LA I CAN'T HEAR YOU!"