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The Benign Neglect Of Tax Policy

I often remark on the utter lack of attention tax policy is given by the Beltway Dem wonks/pundits. Here is more fodder for that point - Chait, Yglesias and Klein. Yglesias is particularly striking:

Future public policy has to be about ways to maximize sustainable economic growth, and ways to maximize the efficiency with which services are delivered. [. . .] The future of American politics is really about how to square this circle. How to find the revenue in viable ways, and how to streamline these services to maximize value to citizens and minimize rent-seeking. Big government isn’t over, or going away. It’s utterly victorious and yet at its limits.

(Emphasis supplied.) I think this misunderstands the fundamental ideological struggle now ongoing. "Big government" is very much at risk, precisely because progressives have surrendered on the issue of tax policy. A government program is only as good as its funding. And in fact, determining whether a government program is good must take into account how it is funded. Currently, our tax structure is extremely anti-progressive. To me this is the biggest issue in politics. It is why I so condemn The Deal. For Beltway wonks, tax policy is not an issue. This attitude utterly amazes me.

Speaking for me only

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    It seems to me that the GOP's answer (5.00 / 3) (#1)
    by Anne on Mon Jan 24, 2011 at 12:03:51 PM EST
    to sustained economic growth is always to...cut taxes, and their answer to more efficient delivery of services is to get the government out of the delivery-of-services business as much as possible and make that a private-sector endeavor.  Except we all know that that never works out quite the way it's supposed to.  Once you start cutting taxes, you are on the path to cutting the services that those taxes used to pay for.  

    Now, Dems used to know what the GOP was up to, back in the day when being a Democrat meant you not only understood the role government could play in improving people's lives, but you resisted all attempts to start hacking away at it.  

    So, here we are: the Dems fell for the first step, and way too many of them are lining up to join in what follows.

    The influx of conservative Democrats, and the election of a nominally Democratic president means that nothing is safe, and instead of opposing the GOP on fiscal policy, they seem to be wanting to hold hands and play nice.

    I truly do not get how this isn't blindingly obvious, nor do I have much confidence that there is going to be any way to stop it.


    It is hard to be positive right now. (none / 0) (#4)
    by Buckeye on Mon Jan 24, 2011 at 12:22:35 PM EST
    Although it looks like Obama is not going to discuss SS cuts or embrace the deficit commission in the SOTU, but speak of public investment.  Does speaking/not-speaking about something translate into actionable governance?  No...but at least he will not be embracing such measure in the SOTU.

    Parent
    Why are you so amazed? (5.00 / 1) (#2)
    by Che's Lounge on Mon Jan 24, 2011 at 12:07:20 PM EST
    The two parties have staffed the government with such cronies that no one wants to pay their taxes to fund such toxic departments as Homeland Security, EPA, DOJ, MMS, etc. This is the "strategery" of Norquist, et al. Let the government fail by it's own deliberate incompetence. The private sector will save us.

    Oh, and you might want to consider (5.00 / 4) (#3)
    by Anne on Mon Jan 24, 2011 at 12:15:29 PM EST
    that the neglect is less benign than it is malign.