Fellow Patriot: The voluntary financial generosity of supporters like you keeps our hard-hitting analysis coming. Please support the 2024 Year-End Campaign today. Thank you for your support! —Nate Jackson, Managing Editor

July 28, 2011

Ideals Versus Realities

Many of us never thought that the Republicans would hold tough long enough to get President Obama and the Democrats to agree to a budget deal that does not include raising income tax rates. But they did – and Speaker of the House John Boehner no doubt desires much of the credit for that.

Despite the widespread notion that raising tax rates automatically means collecting more revenue for the government, history says otherwise. As far back as the 1920s, Secretary of the Treasury Andrew Mellon pointed out that the government received a very similar amount of revenue from high-income earners at low tax rates as it did at tax rates several times as high.

Many of us never thought that the Republicans would hold tough long enough to get President Obama and the Democrats to agree to a budget deal that does not include raising income tax rates. But they did – and Speaker of the House John Boehner no doubt desires much of the credit for that.

Despite the widespread notion that raising tax rates automatically means collecting more revenue for the government, history says otherwise. As far back as the 1920s, Secretary of the Treasury Andrew Mellon pointed out that the government received a very similar amount of revenue from high-income earners at low tax rates as it did at tax rates several times as high.

How was that possible? Because high tax rates drive investors into tax shelters, such as tax-exempt bonds. Today, as a result of globalization and electronic transfers of money, “the rich” are even less likely to stand still and be sheared like sheep, when they can easily send their money overseas, to places where tax rates are lower.

Money sent overseas creates jobs overseas – and American workers cannot transfer themselves overseas to get those jobs as readily as investors can send their money there.

All the overheated political rhetoric about needing to tax “millionaires and billionaires” is not about bringing in more revenue to the government. It is about bringing in more votes for politicians who stir up class warfare with rhetoric.

Now that the Republicans seem to have gotten the Democrats off their higher taxes kick, the question is whether a minority of the House Republicans will refuse to pass the Boehner legislation that could lead to a deal that will spare the country a major economic disruption and spare the Republicans from losing the 2012 elections by being blamed – rightly or wrongly – for the disruptions.

Is the Boehner legislation the best legislation possible? Of course not! You don’t get your heart’s desire when you control only one house of Congress and face a presidential veto.

The most basic fact of life is that we can make our choices only among the alternatives actually available. It is not idealism to ignore the limits of one’s power. Nor is it selling out one’s principles to recognize those limits at a given time and place, and get the best deal possible under those conditions.

That still leaves the option of working toward getting a better deal later, when the odds are more in your favor.

There would not be a United States of America today if George Washington’s army had not retreated and retreated and retreated, in the face of an overwhelmingly more powerful British military force bent on annihilating Washington’s troops.

Later, when the conditions were right for attack, General Washington attacked. But he would have had nothing to attack with if he had wasted his troops in battles that would have wiped them out.

Similar principles apply in politics. As Edmund Burke said, more than two centuries ago: “Preserving my principles unshaken, I reserve my activity for rational endeavors.”

What does “rational” mean? At its most basic, it means an ability to make a ratio, as with “rational numbers” in mathematics. More broadly, it means an ability to weigh one thing against another.

There are a lot of things to weigh against each other, not only as regards the economy, but also what the consequences to this nation would be to have Barack Obama get re-elected and go further down the dangerous path he has put us on, at home and abroad. Is it worth that risk to make a futile symbolic vote in Congress?

One of the good things about the Tea Party movement is that it resisted the temptation to actually form a third political party, which has been an exercise in futility, time and time again, under the American electoral system.

But, if the Tea Party movement within the Republican Party becomes just a rule-or-ruin minority, then they might just as well have formed a separate third party and gone on to oblivion.

Writers can advocate things that have no chance at the moment, for their very writing about those things persuasively can make them possible at some future date. But to adopt the same approach as an elected member of Congress risks losing both the present and the future.

COPYRIGHT 2011 CREATORS.COM

Who We Are

The Patriot Post is a highly acclaimed weekday digest of news analysis, policy and opinion written from the heartland — as opposed to the MSM’s ubiquitous Beltway echo chambers — for grassroots leaders nationwide. More

What We Offer

On the Web

We provide solid conservative perspective on the most important issues, including analysis, opinion columns, headline summaries, memes, cartoons and much more.

Via Email

Choose our full-length Digest or our quick-reading Snapshot for a summary of important news. We also offer Cartoons & Memes on Monday and Alexander’s column on Wednesday.

Our Mission

The Patriot Post is steadfast in our mission to extend the endowment of Liberty to the next generation by advocating for individual rights and responsibilities, supporting the restoration of constitutional limits on government and the judiciary, and promoting free enterprise, national defense and traditional American values. We are a rock-solid conservative touchstone for the expanding ranks of grassroots Americans Patriots from all walks of life. Our mission and operation budgets are not financed by any political or special interest groups, and to protect our editorial integrity, we accept no advertising. We are sustained solely by you. Please support The Patriot Fund today!


The Patriot Post and Patriot Foundation Trust, in keeping with our Military Mission of Service to our uniformed service members and veterans, are proud to support and promote the National Medal of Honor Heritage Center, the Congressional Medal of Honor Society, both the Honoring the Sacrifice and Warrior Freedom Service Dogs aiding wounded veterans, the Tunnel to Towers Foundation, the National Veterans Entrepreneurship Program, the Folds of Honor outreach, and Officer Christian Fellowship, the Air University Foundation, and Naval War College Foundation, and the Naval Aviation Museum Foundation. "Greater love has no one than this, to lay down one's life for his friends." (John 15:13)

★ PUBLIUS ★

“Our cause is noble; it is the cause of mankind!” —George Washington

Please join us in prayer for our nation — that righteous leaders would rise and prevail and we would be united as Americans. Pray also for the protection of our Military Patriots, Veterans, First Responders, and their families. Please lift up your Patriot team and our mission to support and defend our Republic's Founding Principle of Liberty, that the fires of freedom would be ignited in the hearts and minds of our countrymen.

The Patriot Post is protected speech, as enumerated in the First Amendment and enforced by the Second Amendment of the Constitution of the United States of America, in accordance with the endowed and unalienable Rights of All Mankind.

Copyright © 2024 The Patriot Post. All Rights Reserved.

The Patriot Post does not support Internet Explorer. We recommend installing the latest version of Microsoft Edge, Mozilla Firefox, or Google Chrome.