I do not bother to write articles attacking leftist stuff from openly leftist publications or broadcasters.
For example, it may irritate me that the BBC sneer at Sarah Palin as “close to the oil industry” when, in fact, the lady exposed corrupt links between oil and Alaska politics. And it may be annoying that the BBC sneers that Governor Palin made her speech with “her husband and children in tow”, when it did not say that Senator Obama had “his wife and children in tow” when he made his speech. But the BBC is the BBC… it is a leftist broadcaster and its job is to present a leftist view of the world – although it is irritating that people are forced to pay for the BBC.
However, the Economist is different, it claims to be a free market magazine (sorry “newspaper”) dedicated to rolling back the state – and it simply is not.
The latest example is the front cover story “Bring back the real McCain“. When one turns to the article it turns out to be yet another Economist attack on the “irresponsible” policy of John McCain – the policy of trying to keep tax rates from being increased, and even reducing some of the absurdly high tax rates presently in place. The general tone of the article was both that tax cuts for “the rich” are immoral and that, on top of this, they must be “paid for”.
Contrary to what the Economist seems to believe, it was not the reduction of top rates of tax that was the problem under President Bush – on the contrary the revenue from the top rates of tax increased. It was the wild increase in government spending that has been the problem under President Bush.
Not just the mis-management of the Iraq war, although whatever one thinks of the judgement to go into Iraq in the first place the lack of planning for an insurgency meant a lot more blood and treasure being spent in the long run than would have been spent if more troops had been sent in the first place. There has also been all the subsidies, new entitlement programs and other wild spending and, again contrary to what the Economist thinks, the “earmarks” have been very important – for often Congressmen and Senators only vote for a spending bill because of the little earmark for some special interest buried on page…
And who in the Senate has been the most important voice of opposition to all this wild spending over the last few years – for all his faults, it has been John McCain. So for the Economist to claim he is not tough enough on spending to “pay for” his desire to make taxation less heavy is absurd, anti-earmark McCain is but it does not stop there – and, as stated above, the earmarks grease the wheels for the rest of the spending.
As for the idea that higher rates of tax at the top end will mean more revenue, the basis of the Economist claim that not ending the Bush tax rate reductions will cost X vast amount of revenue, this claim does not just ignore the reality of higher revenue from the reductions in the top rates of certain taxes under Bush, it ignores what happened under both Reagan and Thatcher, and under President Kennedy, and under every government that has reduced high top rates of tax since at least the Grand Duke Leopold II of Tuscany in the 18th century. Perhaps Grand Duke Leopold is too recent for the Economist writers, but to the horror of collectivists, “tax cuts for the rich” really do “pay for themselves”.
However, there is also another factor. On the very day the Economist hit the shelves, its sister publication the Financial Times reported that yet more companies were leaving the United Kingdom because of our very high rate of Corporation Tax.
Yes, you guessed it, the American combined State and Federal Corporation Tax burden is actually worse than that of the United Kingdom. “But lots of American corporations do not pay Corporation Tax” – the ones that make losses do not pay for they have no profits to pay tax out of (hint – this is not a good thing for the corporations concerned), other companies do not pay because they are not “corporations” at all – they are privately owned companies whose owners pay income tax on their profits.
Sadly ignorant of all of the above, the Economist specifically targeted John McCain’s proposal to reduced the rate of Corporation Tax as one of his “irresponsible” policies.
John McCain is no economic genius, but has shown the ability to learn. The Economist writers show no such ability, all they can do is to trot out the moronic collectivism they were taught at school and university. I know I have said this before, but it needs saying whilst the Economist still pretends to be a “free market” publication.