Why Taxes Don't Matter Much Anymore

[jeffrey]

I'm really not sure I understand all this tax talk. The government taxes us to get money to do what it wants to do. But it seems like what they do — whether going to war or funding new projects — is never discussed in terms of money they have or don't have. I mean, Bush cut taxes, right? And the reduced revenue should have restrained him. But he spends on whatever he wants. The tax cuts didn't seem to reduce his power at all. Why is this?

It's a good question. Why is it that talk of tax policy doesn't seem to have a relationship to policy generally? Whether it's a bailout of subprime mortgage holders, large investment banks, or going to war, whether or not the resources exist to do these wonders rarely enters into the equation. Why is it that tax cuts don't curb the government? And why do politicians not feel the need to tax us more when they spend more?

Why Taxes Don't Matter Much Anymore - Jeffrey A. Tucker - Mises Institute