Since Reagan’s presidency, the GOP refers to him as a symbol of the GOP. Unfortunately, in today’s GOP, Reagan couldn’t get elected as dog catcher. The party has lost its way. The GOP’s claim to be fiscally responsible started to get chipped away by President George W. Bush when the wars and the tax cuts were not paid for.
During President Obama’s time in office, the GOP tried to claim it was still the party of fiscal responsibility, deriding the growing debt. Don’t’ forget, part of that jump in debt was due to the administration trying to deal with the financial collapse that occurred under President Bush’s administration.
When President Obama attempted to act fiscally responsible and initiated the Bowles-Simpson commission, the GOP tried to undercut it. When President Obama attempted to strike a sweeping budget deal with Speaker Boehner, the GOP blocked it, and the Tea Party ran Boehner out of town, all because Boehner was willing to compromise with a democrat. Compromise with the other party has become a mortal sin in both parties! It all comes down to the GOP wanting full control of the purse strings; not to control the debt but to control who reaps the rewards of the excessive spending.
When President Trump was elected, and the GOP controlled both the House and the Senate, it quickly became clear that the GOP did not care about fiscal responsibility; it only cared about who was controlling the purse strings. The debt has continued to climb, an unnecessary tax cut was given to stimulate an already strong economy, and the growing debt has not shown any signs of slowing.
The unwavering support of supply-side economics is leading to the financial ruin of the United States. President Reagan initiated the experiment of supply-side economics. One of the biggest disappointments of his presidency was that he left the country with a bigger debt than when he started. It’s time to end this experiment and institute more marginal tax brackets at higher income levels to start paying for what the federal government is spending. Also, marginal tax rates could be used for both short and long term investment income to capture a larger portion of some of the only earnings some of the wealthiest receive. This country is not going to “diet” its way out of the massive debt.
Another option for embracing fiscal responsibility would be a resumption of the Bowles-Simpson commission. That commission started with figuring out what flat tax rate would be needed to regain control of our debt. From that point, it determined what marginal tax rates would be needed to pay for any tax deductions. Using this ground-up approach reminds everyone that tax deductions are just another form of spending. It would also allow a debate on what this country values. Companies and some individuals have reaped the benefits of the tax laws, and it is time they pay their fair share to help re-establish fiscal responsibility. Instead of feeding the money back into the economy, the money has been hoarded resulting in companies with several billion dollars on hand and over twenty individuals with a net worth over one billion dollars. The tax laws have been very good to them. Yes, they worked hard, but they haven’t been paying their fair share. Even Warren Buffet said he shouldn’t have a lower tax rate than his secretary. The tax rate isn’t just an issue of fairness; it is an issue of social justice and moral correctness. For the basis of this claim, read Luke 12: 13-21. Ask the question, “how big is your barn?”
