While all the wrangling in Washington about tax rates is important to our wallets, when it comes to government revenues, it is absolutely meaningless.
The fact is, our tax code has become less about raising revenue and more about buying votes, creating class tensions, and control over the lives and behaviors of US citizens.
As far as the federal government is concerned, it doesn’t matter what the tax rates are, nor does it matter how much money comes into the treasury. Congress will spend every single dime of it. And when our tax dollars inevitably run out before the year does, they will borrow or print more money and keep on spending.
Keep that in mind as our fearless leaders debate over the upcoming Fiscal Cliff.
(“Fiscal cliff.” I hate that phrase. This is no cliff…we’ve been flirting with the edge of the abyss for years. We’re just closer to it now, our president says, “Forward,” and the only response from House leadership is, “How fast?”)