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Saturday, May 19, 2007 Tim Walberg Is Wrong On Budget Plan
Congressman Tim Walberg wrote an op-ed piece for the Battle Creek Enquirer that appeared in the May 16, 2007 issue of the newspaper. He took up the issue of taxation and the Democratic budget plan for fiscal year 2008-- a plan he has repeatedly misrepresented as "the biggest tax increase in American history."
In his piece for the Enquirer, Congressman Walberg is absolutely wrong on all counts. If you have a moment, I'd like to take you through it step by step. Walberg opens with this: Well, yes. President Kennedy did, indeed, push for a tax cut as part of his "New Frontier" program. But it's more complicated than that. When Kennedy took office, the highest income tax rate was 91 percent, applied to the richest Americans. He felt that this rate was stunningly high, and in order to help the economy, it was cut by Kennedy to 70 percent. For purposes of comparison, the rate applied to the highest incomes today-- the very richest of the rich corporate executives-- is just 35 percent. But that's not all. Kennedy's tax cuts were very different from those of George W. Bush or Ronald Reagan or Timothy Walberg. David Greenberg wrote a fascinating piece for Slate.com three years ago. He says: In other words, the cuts Kennedy advocated were just as massive as President Bush's cuts, which Tim Walberg supports. But it's not so much the size as it is the target. Kennedy and Walberg have economic outlooks that are polar opposites. Liberals don't think all tax cuts are bad. We just think that tax cuts ought to be directed in a way that benefits as many individual taxpayers as possible. Of course, if Walberg is quoting Kennedy, maybe he'd be willing to support some of Kennedy's other ideas. The "New Frontier" included action on civil rights, raising the minimum wage, revitalizing cities (instead of comparing them to war zones), and other left-leaning causes. But all that was just Congressman Walberg's introduction. Let's continue further into his op-ed piece. First of all, no. Saying that the budget proposal passed in March "represents the largest tax increase in American history... over the next five years" is a clever way of avoiding the truth at best, and an outright lie at worst. As I wrote before, the budget proposal Walberg refers to doesn't raise anyone's taxes. Toward the beginning of the year, Congress passes its plan for spending in the next fiscal year, and then follows that plan with specific appropriations bills. The bill passed by House Democrats says nothing about increasing or decreasing taxes. So where does Walberg get his numbers? When a Republican-led House of Representatives passed President Bush's first term tax cuts, they included in them expiration dates-- most of them will end after 2010. The issue of whether or not they should be or will be extended was not addressed in the budget plan. But when the budget bill made long-term projections, it assumed that the current laws would be carried out as written. That is, it assumed that the tax cuts will expire, as they were intended to, and as they will if Congress chooses not to extend them. That, by the way, would result in a federal budget surplus late next decade, after years of massive deficits. So what does all that mean? It means that Tim Walberg says that a bill that doesn't say anything about raising taxes, and doesn't mention an issue that won't come up for three years, is, in fact, the largest tax increase in American history. Huh. But sure, let's humor him. Suppose this really is a tax increase. What would happen? Well, Walberg tries to inform us. Wait! I've got to stop him right there. Let's take just a quick glance at the Heritage Foundation. It's a conservative think-tank, which focuses on publishing its findings in short papers rather than massive books, in order to appeal to members of Congress with the "briefcase test"-- if it doesn't fit in the briefcase, they won't read it. Unfortunately, this-- combined with a decidedly conservative bias-- can lead to some inaccurate, incomplete, and misleading information. They're very close to the Bush Administration, and the money comes primarily from big corporations and rich donors. They're the folks that started TownHall.com, at which Walberg wrote an essay earlier this year. (For more information, try here, here, here, and here.) In other words, take everything the Heritage Foundation says with a grain of salt. But I'll let Congressman Walberg continue... Right. So, each and every one of us is going to have to pay an extra $3,019? I don't know, that doesn't sound quite right. So I checked out the numbers Walberg is quoting (scroll down for Michigan). What the column actually says is "Average Tax Increase Per Taxpayer," not "for each person." The more you make, the more your taxes would go up. The less you make, the less they'd go up. So Walberg is at the very least guilty of misrepresenting the figure for political scare tactics. By the way, it's worth noting that even the Heritage Foundation study Walberg cites admits that the Democratic budget proposal isn't actually a tax increase. It says: Again, the budget resolution does not contain a detailed tax plan. However, the resolution also is silent on the most important tax policy change since 2001: the expiration of the tax law changes from 2001 through 2004 over the next four years. This paper presents estimates of the potential impact that allowing the Bush tax cuts to expire would have on Americans.So who loses the most from this mythical tax increase? Well, since it would be the expiration of the Bush tax cuts, we have to look at who the biggest winners were. The Center on Budget and Policy Priorities (admittedly, using data from a progressive think tank) gives us this table: In other words, it's not ordinary, middle-class residents of Michigan's 7th District that would end up paying more, if this were actually a major tax increase. Instead, it's the very top that would pay more, the folks that can actually afford to pay more. (By the way, the CBPP analysis I got that table from does a pretty good job of explaining why the Bush tax cuts Walberg loves so much have not actually helped the economy.) Walberg's op-ed isn't finished, though. He continues... As I visit with manufacturers in Battle Creek, farmers in Homer and constituents at a coffee shop in Marshall, I hear the same common theme: Taxes are too high and government should get off our back so Michigan can prosper again.I admit, I probably don't talk to nearly as many farmers in Homer or manufacturers in Battle Creek as Congressman Walberg does. Still, the folks I talk to do grumble about taxes. But that's not the big complaint they have. In fact, nationwide, "Taxes are too high and government should get off our back" doesn't seem to be the major complaint. Here are two recent polls:
Those were both open-ended questions, meaning that the survey reader did not offer any choices. That's important-- it means no one was led on or encouraged to mention any issues. These are the things that are important to most Americans. "High taxes" isn't on either list. But those are national polls. Anything about Michigan? Well, this isn't exactly the same issue, but it's significant. With the current budget crisis Michigan faces, Governor Granholm wants to increase taxes, combined with cuts in spending. An EPIC/MRA poll found that 70 percent of Michigan voters supported a tax increase of some level. There is no enormous anti-tax movement in Michigan or nationwide. You ever get the feeling that maybe, politicians like Walberg hear what they want to hear? But Walberg has more to say. "Spend now, reform later"? Really? This, from the man who opposed spending reforms back in January? See, Tim Walberg says he supports fiscal discipline, but I get the feeling that's a lie. If he really supported responsible spending, he would have voted for the PAYGO rules, which state that any new spending must have some revenue source behind it-- in other words, don't spend more than you have in your wallet. Instead, Walberg voted No. So, House leadership or a congressman that distorts the issue. Who's really insulting Michigan families? The Mackinac Center is Michigan's Heritage Foundation, providing the data for every conservative politician's assertions. I couldn't find the Littman analysis Walberg cites, but this section may, in fact, be the most truthful of Walberg's op-ed. Times really are tough in Michigan, and no one can deny that. Cutting unnecessary spending is always part of the budget solution. However, it's a dangerous thing for a politician to vow never to increase taxes. To anyone not blinded by conservative ideology, it's clear that there are times when it is appropriate to raise taxes. Of course, all this would matter more if the Democratic budget plan were a tax increase, but it's not. Next comes the part of the op-ed where Walberg leaps into legislative action, listing the steps he believes will help. I think it's pretty clear that the 2001 and 2004 Bush tax cuts don't really help "hard-working families" all that much, but I'll let it slide. Walberg's main thesis is, of course, that the budget plan ought to have included extensions of those tax cuts. That's his belief, and, while I disagree, it's an honest disagreement. What bothers me more is the dishonest way in which he frames the issue. I find that insulting. As far as the Balanced Budget Amendment, I'll say that I'm always hesitant to amend the Constitution, but I don't know enough about the issue to take a stance. I will say that a balanced budget would be easier to achieve with those PAYGO rules Walberg voted against. And then, there's wasteful spending. Congressman, eliminating pork-barrel earmarks is a good start, but is there anything else you'd like to see cut? This is a serious question, and if any Walberg staffers are reading this, I'd love to get a serious response. What programs or departments would Congressman Walberg like to see eliminated? After all, with a massive deficit and even larger national debt, it'd be great if we could spend a lot less (and maybe even cut some taxes).
That version passed, 214-209. Needless to say, Congressman Tim Walberg voted No. Of course, as I've reminded you repeatedly throughout this post, no taxes were actually raised.
And that's the end of the piece. After reading what Walberg has to say, how many of you feel like your trust has been restored? That's all I've got tonight. Thanks for reading all the way to the end. Labels: 110th Congress, Budget, Heritage Foundation, Mackinac Center, Taxes, Tim Walberg, Walberg Voting Record ArchivesAugust 2006 September 2006 October 2006 November 2006 December 2006 January 2007 February 2007 March 2007 April 2007 May 2007 June 2007 July 2007 August 2007 September 2007 October 2007 November 2007 December 2007 January 2008 February 2008 March 2008 April 2008 May 2008 June 2008 July 2008 August 2008 September 2008 October 2008 November 2008 |
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