Tuesday, November 9, 2010

Cut Government Spending -- For Other People, Of Course

It seems to be conventional wisdom that balancing the budget will require some combination of spending cuts and tax increases. There are still those on either extreme who like to think that we can spend as much as we like, or cut taxes as much as we please, without compromising fiscal soundness. But more prudent minds understand that getting what we want without going bankrupt will take some kind of sacrifice.

The problem is that not enough people appear willing to make that sacrifice if they’re the ones affected by it. The mostly-older folks rallying at Tea Parties rail against out-of-control spending, but try cutting their Medicare and Social Security and then see how eager they are for smaller government. Republican leaders warn about growing debt from increased social spending, but try getting the defense hawks among them to go along with significant cuts in new weapons systems. Conservatives insist they want less dependence on government, but try cutting the mortgage-interest tax deduction that amounts to a massive subsidy for middle-and-upper-income people.

To be sure, America’s social support for the elderly, a world-dominant national defense, and widespread home ownership are worthy priorities. But they are also among the biggest costs to government. If we are serious about minimizing deficits, we are going to have to go after areas where the greatest spending is done.

Much rhetoric about excessive government spending focuses on programs that help the poor. But much federal spending benefits more affluent people. Social Security and Medicare are not limited to the poor; many tax write-offs benefit middle-class people; more examples could easily be cited. It’s easy to pontificate about how poorer people should help themselves and depend less on the state. But it’s only honest to consider the many ways better-off Americans benefit from government too, often at great cost. In seeking to reduce that cost, there are better places to start than cutting benefits for those who are already struggling to get by, while continuing to cut taxes for the wealthiest people.

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