Wednesday, November 28, 2012

Why Republicans Should Raise Taxes on the Wealthy

First, the reason is NOT because raising taxes is a good idea.  It's not.

The first goal needs to be reducing the national debt.  Few disagree that our debt load is unsustainable.  Few disagree that if we continue down the current path, financial ruin is inevitable.

And no amount of taxes can can fix that problem.  If you were to be able to tax 100% of the income of every single person in America that makes more than $100,000, you would still not have raised enough revenue to cover the annual national debt.

So, then, why exactly should the Republicans consider raising taxes?  Because they, and the rest of our nation, are being held hostage by the Democrats.  The Democrats are the lone party that is currently in a position to accept solutions outside of tax increases, and they won't.

But I thought the Democrats said that the Republicans are the ones holding us hostage?

They did.  Frankly, it's a lie.

The Democrats have the strength in Congress to make demands.  The Republicans have basically been given two options by the Dems:

  1. Raise taxes on those making $250,000+;
  2. Raise taxes on everybody.
The Democrats, though, have more options available to them:

  1. Raise taxes on those making $250,000+;
  2. Raise taxes on everybody;
  3. Raise taxes on some other group of people than the two listed above;
  4. Don't raise taxes at all.
The GOP has only been given two options, both of which raise taxes.  The Democrats, though, basically have an infinite number of options at their disposal, with or without the Republicans.  Who does it sound like is REALLY holding the other party hostage?

So, why should the GOP raise taxes?

Because they don't have any option in front of them that doesn't do that.  They can either raise taxes on those making more than $250K, or they can allow taxes to go up on everyone.  That's it.  Those are their only choices.  In this particular case, the Republicans have to choose to raise the taxes on the wealthy to prevent the taxes from being raised on everyone else.  It's not a pretty choice, but it is the only choice that they have.

Instead of keeping up the non-winnable fight, though, the GOP can choose to agree to the raises now, and spend the next month playing their newly gained leverage to achieve other compromises.

President Obama and the Democrats have thus far only drawn one line in the sand: taxes must go up for those making more than $250,000.  Outside of that, they say they are willing to make compromises.  Republicans need to jump all over that.  Since they have no choice but to agree to the tax increases, then they should draw their own line in the sand.

"We'll agree to your tax increases for the wealthy, if you agree that we'll balance the budget."

If the Republicans make that compromise, then they can turn the tables.  First, they turn the tables on the Democrats that have successfully convinced Americans that the GOP are the bad guys here.  Second, if you can force that compromise, you might actually take the first steps to seeing a brighter financial future for our children, grand-children, and further generations down the road.

P.S. - Tip to the GOP: When you ask for a compromise that balances the budget, invoke the name of Bill Clinton and the fact that he, for all intents and purposes, did just that.

1 comment:

  1. Great post, as always, Josh. Thanks for putting sincere thought into your blog.