BCT Editorial – 4/26/09

This page was last updated on April 30, 2009.

Taxing matters; Editorial; Beaver County Times; April 26, 2009.

The editorial subtitle is “Present-day Americans are being brutally unfair to future generations.”

In trying to link the current lower overall tax rate (vs. the historical high) to our deficits, the editorial was a tad less than forthcoming.

First, over the three years (2005-2007) preceding the recession, the overall tax rate averaged 31.5%. The editorial failed to note effective tax rates decrease on their own during economic downturns as dropping income causes taxpayers to drop into lower tax rate brackets. Recessions also mean people spend less of their income and this reduces how much of their income is consumed by sales and excise taxes.

Second, when the “high was 33.6 in 2000, when, it should be noted, the federal government was running a surplus and the national debt was being paid down,” the editorial failed to note we entered a recession and the NASDAQ took a 32% hit.

Finally, the editorial chides others for spending too much, yet Times editorials tend to support nearly every government-spending proposal that comes down the pike. Reading Times editorials about government spending & deficits is like reading the writings of Dr. Jekyll & Mr. Hyde.