I thought this was not a very impressive article, but the premiss is an intersting debate. See the comments at the end as well. http://www.nationalreview.com/corne...-increases-or-spending-cuts-veronique-de-rugy It does seem to make sense that when the economy is down, raising taxes seems counterproductive.
Which do you trust more? a) A small group of corrupt law makers paying off other corrupt lawmakers and activists trying to decide where to spend more government money. b) Letting the population of several hundred million people decide where money is better spent? If you prefer (a) then you think government spending will be more effective. If you believe (b), then you believe lower taxes will be more effective.
Big Business gets it both ways: they buy off (a) to get their priorities set into law, then make whatever (b) is buying that week, whether it's good or bad. If push comes to shove, they tell (b) what to buy. Big Business is like Honey Badger; it just don't care. Unless of course (a) somehow manages to get even one law passed that doesn't conform to their priorities, then they pitch a huge fit.
That's why the smart move is eliminating loopholes. Fuck big business. Either you can compete or you can't. If you can't, you die.
The tinfoil hat guy in me feels like they have binders full of loophole contingencies, and loopholes they haven't exploited yet that they can just in case some of their favorites are closed. Big Business (and Wall Street too) is like a giant 5-year old. Anything it doesn't like causes a giant temper tantrum.
Let them throw a tantrum. Close the loopholes. Fuck 'em. If they die, they die. Something more efficient will take their place. We'll have some real short term pain, but the economy will be healthier in the long run. If you want a truly innovative society where wealth is created for those willing to work for it, treat all equally under the tax code. This crony capitalism puts a greater emphasis on policy than profit, which is just the way the politicians want it. If an elected official stands for you increasing your revenue without actually producing a better product at a lower cost, then you'll fund the re-election effort of that elected official. It's a corrupt system.
