Saturday, August 14, 2010

Anti-taxation and the de-evolution of America

The American individuals are sleeping at the switch when it comes to being familiar with the role taxation plays in creating the necessary revenue for basic community services. In a recent New York Times piece, Paul Krugman argues that we should all be worried over this. Tax revenue could keep people safer and educate them, but the anti-taxation movement maintains strong resistance. Cutbacks run deep, and not enough tea partiers seem to understand that tax dollars could change those fortunes.

Poor local governments wonder, ‘Why no new taxes’?

While various economic theories exist regarding taxation, it is difficult to dispute that tax boosts could help local governments provide more reliable important services. Krugman sees how the government issues bonds at 1.04 percent but then turns around and claims they can’t help support local governments in trouble. The fed could possibly be doing more to assist. Priorities are totally out of whack, says Krugman. The richest two percent would evidently rather watch Rome burn than pay more taxes as they did during the Clinton administration – when the Americas last experienced an economic boom.

Cutbacks equal higher unemployment

Families are reeling as state and local governments are pulling more vital services off the table. Couple that with a slow in federal spending and Krugman warns that America is stuck in reverse. An employed teacher serves the community and creates a definite job. Allow millionaires to keep more of their money and when that could translate into job creation, there’s also a definite possibility the Chicken Little “sky is falling” mentality will prompt the rich to stash their cash away.

Demonizing the public sector

There is a definite belief the public section cannot manage money to spite itself. Tea party anti-government, anti-taxation rhetoric has been couched in terms of avoiding waste and fraud. Krugman argues that there was never so much waste as the right claimed, however. Witnessing how much ground America has lost in terms of education and infrastructure should be enough evidence to suggest that America is not in fact sidetracked by oppressive taxation. The result of tax fear and decaying programs, writes Krugman, is that America is in a dark place, indeed.

More on this topic

New York Times

nytimes.com/2010/08/09/opinion/09krugman.html?_r=1 and amp;partner=rssnyt and amp;emc=rss



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