Columnist: President Obama’s “Tax Cuts” Grow Government
January 29, 2010
In today’s Washington Examiner, Timothy Carney sums up why the “tax cuts” touted by President Obama in his State of the Union address this week will tend to expand government power:
President Obama, in his State of the Union address, again pledged to “end the outsized influence of lobbyists,” but by dangling out new subsidies and targeted tax credits, the president showed once more why K Street will continue to grow in size and clout in the era of Change.
Obama’s speech was emblematic of his overall economic mind-set: Government should be the rudder that steers industry.[…]
Obama also asked Congress to “give rebates to Americans who make their homes more energy-efficient, which supports clean energy jobs.” Again, he’s picking winners and losers.
If Washington can afford to cut taxes, why should it be so targeted? Driving people toward buying windows and doors drags them away from buying cars, beds or a vacation. Some businesses win at the expense of others.[…]
Obama and Congress get to pick the winners and losers. If you don’t have a good lobbyist, you can guess which side you’ll end up on.
Update: Tim Carney wrote us to emphasize that his argument is that such “tax cuts” grow government control, which is separate from growing its revenues. I agree.
Was this page helpful to you?
The Tax Foundation works hard to provide insightful tax policy analysis. Our work depends on support from members of the public like you. Would you consider contributing to our work?Contribute to the Tax Foundation
Let us know how we can better serve you!
We work hard to make our analysis as useful as possible. Would you consider telling us more about how we can do better?Give Us Feedback