When Tax Cuts Aren’t Tax Cuts

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Max Sawicky is so very right about this:

There are no tax cuts. Banish that phrase from your mind. You haven’t seen any. Republican control of the White House and Congress has yielded trillions in tax increases since January of 2001. How can this be? Simple. When you spend more, and when you pass laws that commit the government to spending more in the future, you increase taxes, sooner or later. Spending not financed by current taxes will be financed by future taxes. A debt increase is the present value of future increased taxes. If taxpayers merely pay interest on the debt incurred, forever, the present value of the interest payments is the initial increase in debt.

On the other hand, that’s not all, strictly speaking, true. Some people will get genuine tax cuts—and guess who they are? The Center on Budget and Policy Priorities ran the numbers on this a while back, and found that if the government cuts taxes and then increases spending, the ultimate burden of these virtual “tax increases” would fall on middle- and lower-class families. That is: a tax cut, followed by the sort of deficit spending Bush and the Republicans are so fond of, followed by progressive financing of the deficit, would ultimately make the bottom and middle 20 percentiles worse off, in total, by a couple hundred bucks, while those making over $1 million would come out ahead in the end, by some $60,000 apiece, on average. Not a bad deal, when all is said and done. So yes, a few Americans are getting tax cuts, even under Sawicky’s definition.

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SIX TRUTHS

Reclaiming power from those who abuse it often starts with telling the truth. And in "This Is How Authoritarians Get Defeated," MoJo's Monika Bauerlein unpacks six truths to remember during the homestretch of an election where democracy, truth, and decency are on the line.

Truth #1: The chaos is the point.

Truth #2: Team Reality is bigger than it seems.

Truth #3: Facebook owns this.

Truth #4: When we go to work, we're in the fight.

Truth #5: It's about minority rule.

Truth #6: The only thing that can save us is…us.

Please take a moment to see how all these truths add up, because what happens in the weeks and months ahead will reverberate for at least a generation and we better be prepared.

And if you think journalism like Mother Jones'—that calls it like it is, that will never acquiesce to power, that looks where others don't—can help guide us through this historic, high-stakes moment, and you're able to right now, please help us reach our $350,000 goal by October 31 with a donation today. It's all hands on deck for democracy.

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