Wanted: A Wise and Frugal Government

April 18, 2012 By Gary M. Galles

What drives domestic politics today is government income redistribution. It forms the core of virtually every fiscal battle, since every policy that gives some what they don’t pay for must be funded from others’ pockets.

That gets highlighted during income tax season. The lowest 40% of earners now pay negative federal income taxes as a group (largely due to the refundable Earned Income Tax Credit), and those earning moderate incomes pay relatively small amounts. That forces higher earners to shoulder essentially the entire income tax burden, as well as the future costs of massive deficits.  More…