In a lengthy and technical (for a newspaper) account of the American tax system, "The Tax-Cut Con" in NY Times magazine, Paul Krugman dispells some of the myths of the tax haters, and reveals what looks like the master plan behind bush-o-nomics. A massive planned federal fiscal disaster that will make drastic cuts of social security and healtcare systems to a pre-depression level.
A abbreviated version of the argument goes like this: The current fiscal deficit is so drastic that it will not last another decade. When catastrophe ensues it will be completely impossible to combat the disaster by raising taxes, since that will shock the economoy badly if the taxes go up enough to have a meaningfull effect on the deficit. The only other alternative is drastic cuts in public spending and welfare programs are the only ones of sufficient size to matter in such a disaster.
In other words: According to Krugman, any notion that Bush is cutting 'responsibly' must be viewed as pure spin. He's just comforting voters until, faced with a complete disaster, they come around to his view of minimal government. Krugman also picks apart the anti-tax propaganda, describing it as consistently wrong and misleading in its description of the damages of taxation. In particular, the tax cuts consistently are marketed at the middle class, whil ein fact they rarely benefit anybody but the affluent.
Required reading.Posted by Claus at September 16, 2003 02:31 AM | TrackBack (0)