Boston Globe notes BUSH INCREASING THE BIRTH TAX -debt

[papau]

http://www.boston.com/news/globe/editorial_opinion/oped/articles/2003/11/03/the_biggest_tax_is_debt/

BYRON AUGUSTE AND MARK STRAMA
The biggest 'tax' is debt
By Byron Auguste and Mark Strama, 11/3/2003

IN RECENT YEARS, much has been made over the repeal of the estate tax -- or "death tax." Much less attention has been paid to a far more pernicious tax -- the "debt tax" -- which is bigger than the estate tax, capital gains tax, and so-called "marriage tax" combined.
When the Democratic presidential candidates convene here on Tuesday to engage a skeptical generation of younger voters at the Rock the Vote debate, we ask them to address the debt tax as the most important issue affecting young Americans today. American taxpayers paid $332.5 billion in interest last year on the national debt. This huge payment, equal to 11 percent of the total federal budget, does not improve education, enhance homeland security, or rebuild Iraq. It merely services the $6.6 trillion (and growing) national debt.These interest payments are a "debt tax" -- a tax that drains income without producing any material benefits for taxpayers. <snip>

The debt tax is likely to grow in the coming years, placing an enormous burden on tomorrow's taxpayers. Even if the national debt does not increase, projected increases in interest rates will increase the cost of borrowing money -- increasing the debt tax.
But the national debt is increasing, because the government is spending beyond its means. In the past three years, federal spending has increased by 13.5 percent. Only half of this increase is attributable to the war on terrorism. And this figure does not even include the $87 billion recently requested for our efforts in Iraq and Afghanistan.

Meanwhile, the tax cuts of 2001 and 2003 are projected to reduce revenues by $1.35 trillion. Even if interest rates remain constant, this year's budget alone will add approximately $22 billion to annual interest payments -- $22 billion in debt taxes. "Tax relief" for today's taxpayers is, plain and simple, a tax increase for tomorrow's taxpayers.

As a result these factors -- rising interest rates, growing spending, and massive tax cuts -- the debt tax burden will continue to mushroom. The administration's own projections show the debt growing by half through 2008. This means that in five years, the average family could be paying between $4,500 and $6,000 or more each year in debt tax alone.<snip>

[ramapo]

1. It's just common sense

Good for the Globe. It's so simple. Like Perot said, debt is the crazy aunt in the attic. Nobody (well no politician anyway) wants to talk about it because there's no easy way out.

So we must need more tax cuts (to put the govt in debt), so people can spend more (so the citizenry is more in debt) which will produce jobs so we can pay taxes which will pay off the govt debt (well not really).

[politicat]

2. Heinlein may have been a libertarian, reactionary with a worrisome

lack of objectivity, but he was right about one thing: There Ain't No Such Thing As A Free Lunch.

I wish that my tax cuts weren't saddling my poor nephew and soon to be arriving niece with debt.....

Well... I didn't vote for him....

[SoCalDem]

3. Ooooooh I LOVE it... Birth tax.. That's super

We need to spread the word :)