Why my head is spinning over the tax cut issue.

1. No one likes taxes, wasteful spending, and ridiculous deficits, but everyone (from all political parties and independent) demands government to address whatever their personal priorities might be (schools, roads, national security, protecting financial system, research/development, safety regulations, reduce health care costs/abuses, trade promotion, protecting environment, tackle unemployment, etc.). All (especially voting public) talk good game, but few are brave enough to accept real across the board (that includes defense) spending cuts necessary to reduce deficit. Can’t have it all ways, people.

2. The “starve the beast” theoretical crowd pisses me off. It’s certainly no fun when government confiscates wealth for any purpose. And it’s not crazy to want a smaller government. So, those who hate redistribution and want a skeleton government should look the public in the eye and honestly explain exactly what services should be eliminated, rather than tricking the people into thinking that the same level (or more) governmental services can be paid for with less tax revenue.

3. After decades of hearing that supply side/trickle down can simultaneously grow the economy, create tax revenue, and cut deficits, the theory has yet to be proven and pretty much disproven. Makes for great sound bites and has political appeal, but – again – we can’t have it both ways. If the public wants government to do stuff, the public must pay for it somehow.

4. 1990s tax rates: surplus and growth. 2000s tax rates: broken promises, negative growth, deficits, unemployment, and excuses. Taxes can be both too high and too low. There is such a thing as a level of taxation that sustains growth… and perhaps the 1990s rates were sustainable.

5. GOP (while crying deficit crocodile tears) is holding continued tax cuts for 99% hostage to prevent increases for top 1%, saying that small businesses within the top 1% will use difference to create jobs. True small business job creators can be easily carved out of top 1% increases. Political spin taxes like “marriage” tax and “death” tax can also be carved out. Capital gains and alternative minimum taxes are ripe for compromise. So, what’s the issue?

6. Objective accounts say more personal income for top 1% will be hoarded, sheltered, or splurged rather than used to grow the economy and hire people. Sure, if I were top 1%, I’d fight like hell for my personal income, and I don’t fault them at all for protecting their interests. But I’m not in the top 1% and won’t fight like hell until I am, so why are those who aspire (yet are no where close) to being rich so happy to carry the water for the rich? Hell, the consumption of the masses is what makes the top 1% rich, and plenty of rich people know it’s good for them when more Americans have money to spend. Yet somehow it’s “class warfare” when others do what the rich have perfected: fighting for their own economic interests.

7. Democrats are sorry negotiators, that is if they (i.e. Senate Democrats) even believe what they espouse. They’re negotiating from what should be a most enviable position: defending tax cuts for 99% against increases for the top 1% (screw the easy-to-solve “small business” job creators mumbo jumbo), and have nothing to lose because they just lost almost everything on Election Day. Yet, somehow this is still subject to debate; people among the 99% who would keep their tax cut somehow think their livelihood is on the line if taxes go up for the very rich in order to pay for all the stuff we all say we need government to do. Wow.

8. How about stare Mitch McConnell in the eye and say: “You keep on fighting for the top 1%. 100% of taxes will go up on Jan. 1, it will be your fault, and we’re going to explain why it’s your fault every single day. Bye bye.” Sure, two years of more impassioned “tax and spend liberal” spin is will be fun for the GOP, but that’s going to happen anyways and I doubt (if taken to task) they’ll find worth in two years of explaining their responsibility for higher taxes for everyone. And the treasury would have the revenue, which is a sad but real consolation.  Nevertheless, if history is our guide, Dems will capitulate and still get all the blame. #headspinning