Democrats and the Value of a Tax Dollar

The focus of Washington (and much of the world it seems) is on raising the debt ceiling.  However, the reason why it's suddenly an important issue is because Republicans want to use the debt ceiling as a cudgel to deal with the deficit their way.

But as much as Republicans talk about deficit reduction and responsible governance, this is about spending.  This is an important distinction.  Republicans want to use the debt ceiling to advocate slashing spending to as low as 18% of GDP.  This is not about getting our books in order to please Moody's or the investment community, it's about ideology: smaller government because, and this is key, government is bad.

There is some reason to believe the GOP is winning this argument.  As David Brooks pointed out in the New York Times last week, Republicans would typically jump at the chance to reduce the deficit with four dollars in spending cuts for every one dollar in tax increases.  And yet many are scoffing at that prospect.  (We'll see if that holds up.)

How did it come to this?  Some will argue it's the power of Reagan, or that people are sick of Washington, or it's the bad economy, or it's misinformation (and certainly that's part of it).  But I think the answer is simpler: Republicans have gotten away with arguing a tax dollar spent is a dollar wasted.  The only path to a better America is less government.  The debate has become less about priorities and more about "out of control government."  I'll blame the Democrats for this.

When Mitch McConnell argues against raising taxes by asking why we'd give more money to the people who have proven to be poor managers, nobody is punching back.  I'm not arguing that government is perfect, but the private sector has similar problems.  How many times have you purchased a product that did not live up to its billing?  Have you every waited too long to speak to a customer service representative?  Has a stock you owned ever fallen because of irresponsible corporate governance?

In fact, we as a society effectively pool our resources for the greater good.  The government provides a suite of services that make the U.S.A. stronger and more competitive.  The merits of these endeavors should be, and are, subject to the highest level of scrutiny, but to wholesale say the value of a tax dollar is near worthless is just irresponsible.  So I ask Democrats, where are you?

When Republicans scream that the Consumer Financial Protection Bureau is a burden on banks, where are Democrats to remind people that lack of regulation in the consumer mortgage market was a strong factor contributing to the financial mess we're in?  When Republicans brand government as a job-killing waste of money, who is standing up for programs and regulations that keep our fisheries from collapsing, our poor children fed, oil out of our oceans and discrimination out of our workplace.

Ask any taxpayer, and they'll agree that each of these goals has value, and yet the thought of finding the proper revenue base to pay for these priorities is so easily fought off with, "don't tread on me".  Don't take more of my money and flush it down the toilet.

It's time that Democrats hold Republicans accountable, and make a clear case to the American people.  We have been cutting taxes at an unsustainable pace for the past 20 years.  We can keep your taxes at that rate, but innovative drugs will be slower to the market, coal plants will continue to spew mercury into the air, fewer kids will go to college, and most importantly, the middle class will shrink, as it has been. If people are OK with that, then we can race to the bottom of the tax revenue barrel.  My guess is people will instead be fighting mad.