Thursday, September 30, 2010

Washington Logic

There was a song fifteen or twenty years ago called Cowboy Logic, which detailed the worldview of the American cowboy. Sometimes this logic differed from what modern man might call convention, but it made sense in the end. Today, I introduce to you the concept of Washington Logic. It is also counter-intuitive, but unlike Cowboy Logic, it doesn't come back around to making sense later.

The following list is by no means comprehensive, but here are a few examples of when you know your leaders have been in Washington too long.

DC fallacy #1: Maintaining the same tax structure next year as this year is a tax cut.

The President has been throwing this logic around, hoping you'll buy it. This would be like going to buy a car and having the salesman tell you he'd cut you an even better deal... by giving you the same price that's on the sticker.

DC fallacy #2: Going to a higher tax rate next year is NOT raising taxes.

It's easy for politicians to talk about “letting the tax cuts expire”. But this would be like your employer offering you a raise... to your current salary.

DC fallacy #3: Cutting taxes is the same thing as increasing spending.

It is true that more debt is invoked if you reduce the amount of money you bring in while continuing to spend every penny you used to make. That's why most of us who have had to figure it out on less money have made corresponding cuts in our expenditures. Still, given fallacy #1, you really can't claim an increase in spending when there's no tax cut on the table anyway.

DC fallacy #4: Raising taxes will create jobs.

If this were true, states with the highest tax rates would also have the highest job growth. What do we see instead? States with more favorable tax structures have job growth while California becomes more and more insolvent. Democrats always talk about Republicans who give tax cuts to companies who send jobs overseas. But tell me this: if the Dems make the tax structure in the US unfavorable, who is really responsible for corporations moving operations offshore?

DC fallacy #5: By postponing the vote on extending the Bush tax cuts, Democrat lawmakers will fool voters into voting for them.

Sorry, Senator Reid, but the smokescreen isn't going to work. You had the opportunity to start the economy moving in a positive direction by letting the job creators know they wouldn't be facing a major tax increase in 2011. The only reason you would choose not to take that vote right now is because you are planning to raise taxes on those who can affect recovery. Then again, putting your agenda ahead of economic recovery has been a theme of yours over the past 21 months, hasn't it?

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