(A letter I sent to another forum):

As Marco Rubio said, we need more taxpayers, not more taxes. Over the past 45 years the Federal government’s outlays have quadrupled in size, and yet the percent of GDP used by government has only gone up seven percent. So, for years the economy grew enough to mostly support the bloating of government.

Much is made of Clinton’s tax rates compared to those of George W. Bush. In 2000, revenues hit an all-time peak at that time of $2.31 trillion, creating a surplus under Clinton’s rates. The Democrats point this out as an indication that higher taxes create more revenues.

Yet revenues in 2007, under the Bush tax rates, were $2.41 trillion, or $100 billion more than the great surplus year of 2000. Republicans point this out and say that lower tax rates create more revenue. Note that despite this increase in revenue, spending still outstripped it. 2007 had a deficit of $151 billion.

And now the gripping hand: current revenues (2011) in this economic slump are estimated at only $1.91 trillion. This is $500 billion less than the 2007 revenues, but note that the Bush tax rates have not changed one bit during that time. Okay, now what?

Maybe, just maybe, it isn’t about the rates. Maybe it’s about people making a whole lot of money and paying taxes on it.

If we want this country to succeed, it will happen because a government is in place that makes it safe and easy to create wealth and dispose of it as the creator sees fit. As long as a government is in place that considers the words “pro-business,” “wealthy” and “profits” to be obscenities, this is unlikely. Change this, and we will prosper again. Fail to change it, and we will decline. It really isn’t going to matter that much what the tax rates are, except insofar as they encourage or discourage the creation of wealth.

If you want the truth, we would be doing a lot better if we settled on ANY tax rate, and told the nation that here it will stand for at least five or ten years to come. Government consistency and predictability are often more important to the business community than anything else. Obama and the Democrats are less of a problem because they’re socialist than they are because are using the immense power of the State erratically and arbitrarily. We have seen many historical situations where every brain fart from the rulers becomes an imperial command. It is not a recipe for stability or prosperity.

One theory on the secret of stable government:

“They think they want good government and justice for all, Vimes, yet what is it they really crave, deep in their hearts? Only that things go on as normal and tomorrow is pretty much like today.”
– Lord Vetinari (Terry Pratchett, Feet of Clay)

(All monetary comparisons in this letter are in constant 2005 dollars.)

Tom Brosz