When Ronald Reagan uttered those words in 1980, he was talking about the Democratic incumbent and rival for the presidency, Jimmy Carter. But these words could just as easily apply to Republicans today – especially when it comes to tax policies they are pushing through Congress.
It seems Republicans just can’t seem to say no to any business tax lobbyist in Washington. So what started out as a measure to ease the pain of the end to an international tax subsidy has now become a goody bag for special interests. And in the process, the tax code will get more and more complicated.
Senate Republicans, with the willing help of Democrats, have larded up a bill with tax breaks for, among other industries, bow-and-arrow manufacturers, NASCAR track owners and Oldsmobile dealers. In the House version, tobacco farmers get more than $9.6 billion and bank directors get a $148 million treat. So what once was a simple cut in the effective tax rate manufacturers pay is now Christmas in July, and everybody is invited to the party.
To be sure, tax rates on all business should be cut. Businesses don’t really pay taxes, their customers do.
But Congress is trying to pick winners in the marketplace, and you can’t make a few winners without making some losers, too. Can you say ethanol? The only reason that fuel exists is because of government subsidies, despite the fact that some studies show that it is more prone to explode than regular gasoline. Or how about sugar subsidies? Sure, the 11,000 or so sugar cane and beet farmers get some cash. But what about all the candy makers who’ve left the country because the price of sugar is too high?
What a difference nearly 25 years makes since Reagan debated Carter. If the Gipper were still with us, he would doubtless be talking to Republicansand saying, “There you go again.”