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Rural groups endorse budget cuts in the past

Thursday, September 10, 2020

posted by Andrew

Rural groups endorse budget cuts in the past. But in the past year, the majority of rural GOP voters backed budget austerity — in particular, the fiscal 2015 federal spending freeze and the 2011 stimulus.

In fact, at the 2012 Republican National Convention, about half the delegates voted against funding the federal government, including many from rural areas.

According to the Center for Budget and Policy Priorities, nearly half of all federal discretionary spending goes to state, territorial and local government, as opposed ??????? ??????to defense, which accounts for around 70 percent of federal government spending.

These spending cuts make government far more inefficient and reduce the economy. However, according to a report from the Congressional Research Service, it’s actually far more cost-effective to rely on taxes, fees and???? levies to fund basic services, such as education.

Republicans can’t get rid of taxes or fees, or raise taxes on the wealthy and middle class and still cut programs such as Medicaid, Medicare and Social Security. And they can’t afford to raise the minimum wage without paying for those higher spending levels and higher costs of living.

In order to reduce deficits, and avoid the worst of both worlds — higher government costs and a higher budget deficit — Republicans argue that their preferred revenue source is raising tax rates on individuals, businesses and households to create the revenue needed to balance the national budget, while also providing the benefits of higher taxes to individuals.

The Republicans’ fiscal blueprint calls for increased marginal rates on high-income individuals, and proposed eliminating the capital gains??? ??? tax. And while eliminating the top tax rate is probably the last Republican plan to address the deficit, it doesn’t mean it won’t make the deficit look lower.

One GOP argument is that tax cuts will bring in more revenue because wealthy tax dodgers will save money by shifting money to capital gains and dividend paying accounts.

Yet studies in the past few years confirm the opposite is true, in fact, lower tax revenue can only raise taxes for wealthier Americans, and it doesn’t reduce the deficit as much as the GOP argument would have you believe.

In fact, studies on the impact of cutting taxes and fees on the economy have found that the most efficient way for the government to pay for services — health care, education, Medicare and other social programs — is to tax the wealthy at the highest income bracket.

In fiscal year 2014, the nonpartisan Congressional Budget Office concluded, the $4 trillion tax code raised by cutting taxes and fees would be spent only on programs that the government could afford

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