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The $9 Trillion Federal Budget
by Sheldon
Richman, October 2000
George Bush would spend more on a tax cut for
the wealthiest 1 percent than
he would spend on Social Security, health care, education, and the armed
forces combined.
Vice President Al Gore said that, or something
like it, hundreds of times in
the debates and on the campaign stump.
Just once Id like to see Governor Bush say to the American people,
Apparently, Vice President Gore cannot understand the difference between
cutting taxes and spending money. If he cannot make even that elementary
distinction, how can he be entrusted with the presidency?
Alas, Governor Bush cant say it
because he himself doesnt understand the
point. Thats the mess we find ourselves in.
It doesnt get any more basic that this, folks: Government can spend your
money or it can let you keep it. The first option is called spending,
the
second tax cutting. The categories logically cannot overlap.
Government
either takes that hard-won dollar out of your pocket or it doesnt.
Thats not what happens in Al
Gores world. For the veep, when the
government abstains from taking a dollar from you, that is a form of
spending, which competes with all other possible forms of spending. It may
well decide that there are better uses for that dollar. Gore thinks there
are plenty of uses better than whatever purpose to which you would dedicate
that dollar. Indeed, his running mate, Sen. Joseph Lieberman, said that
spending the money on a tax cut would be a waste of that
money. In his
own debate with GOP vice presidential candidate Dick Cheney, Lieberman said
the wealthy shouldnt get a tax cut because they dont need
it. If only
Cheney had turned to him and said, When did this country enshrine
Marxs
principle to each according to his need? (Actually, the
answer is: Long
ago.) I guess that would have been criticized in the media as a
mean-spirited attack.
The implications of Gore and
Liebermans outlook are astounding. If cutting
a tax is equivalent to spending money, then it must be true that the
government is also spending whatever money it does not now take from the
taxpayers. After all, it could have taxed that money and used it in other
ways. Therefore, its decision not to tax it is, in Gores logic, an
expenditure.
In other words, the governments real
budget is more than $9 trillion, the
gross domestic product of the United States. The government owns all income
and graciously lets us keep some of it. But the amount we may keep is
subject to change at any time.
There is one problem with the Gore worldview:
the money he wants to spend
belongs to someone! Surely, his mother told him during his privileged
childhood that money doesnt grow on trees. Its the result of effort
and
ingenuity. A dollar taxed is first a dollar earned by someone. Is that
producer to receive no consideration in the matter? Gore and Lieberman may
respond that the wealthy dont need their money, but no self-respecting
American, who ires to be wealthy, would accept that shameful answer.
I wish I could say that Governor Bush
understands what Vice President Gore
does not. Alas, he shows almost no sign of such understanding. When he
says, the surplus is the peoples money, it sounds as though
he
understands. But the peoples money can also be interpreted
in a
collectivist way. Al Gore responds to Bushs slogan by saying,
Its also
the peoples Social Security and the peoples health care and the
peoples
education. I havent heard Bushs rebuttal. But hell
have a hard time
coming up with one, since he too believes the government should provide
pensions, health care, and education. If two people accept the same
premises, the most consistent one will tend to win the arguments. Gore is
certainly the more consistent collectivist.
But contrary to the vice president, the
government does not have first claim
on the wealth that Americans create. Nor does it have the right to usurp
the right of each of us to live according to his own purposes. Has the
welfare state so corrupted the American spirit that we are willing to
embrace those profoundly un-American ideas?
Sheldon Richman is senior fellow
at The Future of Freedom Foundation in Fairfax, Va. (www.fff.org), and
editor of
Ideas on Liberty magazine.
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