The New York Post ran a little blurb about the Joint Committee on Taxation and the debate on whether to extend for another year the Bush tax cuts to the top income brackets.
House Majority Leader, Steny ‘Strong-arm’ Hoyer, decries the $38.8 billion dollar “cost” of extending the cuts through 2011 as if it were an expense. If Hoyer can’t differentiate between “expense” and “revenue”, as the $38.8 billion would more properly be accounted, then he has no business making tax policy in the first place.
In early 2009, the Associated Press ran a story about yacht builders laying off workers because the economic downturn caused the wealthy to purchase fewer yachts. For all the mainstream media’s vilification of the “trickle-down” economic theory, the AP validated it in this story. Logically, if lack of spending by the wealthy takes away jobs, spending by the wealthy creates them.
Rather than the tired, class warfare battle-cry of “No fair! Tax cuts for the rich!”, Democrats could have simply skipped the most recent $26 billion bailout and covered most of the revenue short-fall. Instead, Hoyer, who can’t distinguish revenue from expense, has deemed himself better qualified to determine how money is spent than the Americans from whom he aims to collect it.