Pat Buchanan thinks that Boehner should have rejected Timothy Geithner’s demand of $1.6 trillion in tax increases. Buchanan did not mention that Boehner responded with an offer of $800 billion in tax increases.
Buchanan thinks Boehner is worried about what voters will do if the Republicans refuse to go along, and the economy tanks. He thinks the right response is for the Republicans in the House to pass tax cuts and send them to Harry Reid. One tax cut is FICA: Social Security.
I think he’s right. Put the ball into Reid’s end of the court. Let the Senate Democrats block tax cuts for the middle class.
But won’t tax cuts raise the deficit? Probably. Then why should Boehner push for tax cuts. Because nothing can save the federal government from default anyway. The real deficit is rising by $11 trillion a year. As long as we are going over a real fiscal cliff, why not enjoy lower taxes while we are waiting?
Isn’t this a policy of kicking the can? Yes. A little can. That is the right policy when you have decided to kick the really big can until there is a tax revolt by workers against Medicare and Social Security recipients. Delay the inevitable. That’s best for taxpayers.
Why pay higher FICA taxes when you can pay lower? If the system really is doomed, why not let the suckers pay? Who are the suckers? Those investors who lend money to the U.S. government. They think they can beat the system and get out in time. But of course most of them won’t. It’s like a sinking ship with too few lifeboats. Most of the passengers will go down with the ship.
I say: “Kick the can!” No more tax increases. Run the visible deficit to the moon. The real one is halfway to the sun.
Put more of your after-tax money into assets that will survive the Great Default.