Monday, July 08, 2019

The Democrats aren’t radical, but Republicans are.

https://www.nytimes.com/2019/07/01/opinion/2020-democrats-taxes.html?emc=rss&partner=rss

Paul Krugman
July 1, 2019

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On fiscal and economic responsibility: Nobody who endorsed the 2017 tax cut has any right to criticize Democratic proposals to spend more on things like child care. That tax cut, after all, appears likely to add around $2 trillion to federal debt — with around a third of that going to foreigners. Meanwhile, the promised surge in business investment is nowhere to be seen.

At the same time, there’s a very good case for arguing that Democratic proposals would have economic as well as humanitarian benefits.

Support for child care, for example, would free more women to enter the paid work force — where they would pay taxes that would offset some of the cost. And the children benefiting from that support would eventually become healthier, more productive adults.

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Last but not least, if your view is that the progressive agenda is morally wrong, that people shouldn’t receive more in government benefits than they pay in taxes, you should be aware how many Americans are already “takers,” “moochers,” whatever. In fact, we’re talking about a vast swath of the heartland that includes just about every state that voted for Donald Trump.

I’ve been reading a recent Rockefeller Institute report on states’ federal “balance of payments” — the difference for each state between what the federal government spends in that state and what it gets back in revenue.

The pattern is familiar: Richer states subsidize poorer states. And the reasons are clear: Rich states pay much more per person in federal taxes, while actually getting a bit less in federal spending, because Medicaid and other “means-tested” programs go disproportionately to those with low incomes. But the magnitudes are startling.

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So if you really believe that Americans with higher incomes shouldn’t pay for benefits provided to those with lower incomes, you should be calling on “donor” states like New Jersey and New York to cut off places like Kentucky and let their economies collapse. And if that’s what you mean, you should let Mitch McConnell’s constituents know about it.

The point is that while you can criticize particular Democratic proposals, you can only portray progressives as radical or irresponsible, especially as compared with the modern G.O.P., by ignoring or suppressing a lot of facts. I guess facts really do have a liberal bias.

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