Wednesday, January 26, 2011

Avik Roy deceives

More bullshit from the Big Government Conservatives at NRO:
One of the most common complaints that conservatives have with CBO projections is that they do not take into account how changes in tax rates affect behavior and economic growth.
I tire of referencing the research, but lower marginal tax rates on the wealthy increase federal spending relative to the economy.

Reagan tax cuts yield federal share of 23%. Clinton tax hikes lead to federal share 19%. Bush tax cuts lead to federal share 23%. Obama tax cuts lead to federal share 25%.  1950s, top rate 91%, government share 17.5%.  Minimal emerging government results in a progressive tax because it results in a fee for service model. He goes on:
Those who believe that tax cuts are to blame for our deficit are, by definition, of the view that federal spending at 25 percent of GDP is acceptable, despite its deviation from the historical average of 20 percent.
No, where did this nonsense come in?  I think federal spending of 17.5% is fine, so I want marginal rates raised to 91%, I think Reagan,Bush,Obama are big spenders, they lower the cost of government to spend more.  Avik is the one who wants much higher spending.  Avik has a problem with math.

The research originated in CATO, has been proven over and over,.  Avik is simply engaged in the continuing deception in spite of evidence.  We have a secret alliance between Progressives and Conservatives to shift business expenses onto government and charge the middle class.

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