Tuesday, January 15, 2008

Limbaugh's Logic Proves Huckabee Lowered Tax Rates

The "Talking-Heads" of both talk radio and cable news are at it again. Spurred on by a Mitt Romney talking-point; they are accusing Mike Huckabee of "a net [tax] increase of half a billion dollars," during his time as Governor of Arkansas. This includes some of the most vocal political analysts and commentators from Rush Limbaugh on down.

They base this conclusion on the fact that, even though Huckabee presided over more tax-reductions than tax-increases, there was an increase in taxes collected. Let's remember one of those economic principles that Reagan's opponents called "voodoo-economics", but which have proved to be true. An overall decrease in tax rates boosts general prosperity, which in turn results in an increase in tax revenues.

Yes, when the government takes a thinner slice of the pie, the pie gets bigger; and as a result, even the government ends up with a bigger piece of pie.

I searched Rush Limbaugh's website , and found this specific instance of how the self-proclaimed "Doctor of Democracy" explains the relationship between tax rates and tax revenues.
"You know, they keep calling the Bush tax cuts, 'tax cuts.' They weren't. They were tax increases! The amount of money that roared into the treasury increased after the tax cuts. We had tax rate reductions, but tax revenue increased. You could actually more accurately say that the Bush tax cuts were tax increases. They were just happened by virtue of rate reductions." - Rush Limbaugh: 2007.12.19 "Stack of Stuff Quick Hits page", article #12 (emphasis mine)
Rush is fond of "illustrating absurdity by being absurd," and it's pretty obvious that he's doing just that in the quote above. Who would be so absurd as to actually call the "Bush tax cuts"; "tax increases".

Likewise, those who confuse (or ignore the difference between) tax revenues and tax rates to tar Mike Huckabee as presiding over "a net increase" in taxes can only be called one of three things; Absurd, Mistaken, or outright lying! Even Rush Limbaugh should admit that either he now thinks Reagan's tax principles are "voodoo-economics"; or that Mike Huckabee really did lower overall tax rates as Governor of Arkansas.

Related posts:
"Can a Populist be Conservative?"-2008.01.04
"Huckabee Shows Fiscal Conservatism"-2007.12.14

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