Economy

Revenue Neutral Fever

By now you may have heard of the new policy phenomenon sweeping the GOP known as "revenue neutral." A policy position which says you can only implement tax-hikes if you offset them with tax-cuts in other areas, effectively canceling out any additional revenue you might have gained by doing so.

The first genius to profess the virtues of this new school of Tax-Cut Magic was Paul Ryan, the Republican budget front-man, but now Eric "The Weasel" Cantor and John McCain are taking turns running the torch.

"If the President wants to talk loopholes, we'll be glad to talk loopholes," House Majority Leader Eric Cantor (R-VA) told reporters at a Wednesday Capitol briefing. "But, listen, we are not for any proposal that increases taxes, and any type of discussion should be coupled with offsetting tax cuts somewhere else."

We're happy to talk about loopholes, but we're not willing to close any of them. Even if we did close them, they would have to be offset by cutting taxes elsewhere.

John McCain continues with the mother of all trickle-down lectures.

"Millionaires can contribute to deficit reduction by spending part of their millions," said Sen. John McCain (R-AZ). "I agree with the Wall Street Journal editorial this morning: We should cut the corporate income tax from 35 to 25, and close loopholes that are in, and make sure that everything is revenue neutral, and that is a great approach."

Millionaires spending their excess cash to reduce the deficit might sound like a good idea... Wait. No. It doesn't. In fact, that may be one of the most idiotic statements to ever emerge from John McCain's mouth.

The kinds of things millionaires spend their money on do not help the average person. Buying a tax-deductible yacht, another vacation home, or taking a trip to Mexico or Europe does nothing to help people here at home. Neither does buying another 70 inch TV which isn't even made here and more than likely crossed the ocean in a tax-free container.

And how exactly is any of that suppose to contribute to deficit reduction? It's not as if Millionaires are going to begin writing checks to Washington to be used for deficit reduction or --gasp -- pay more taxes! That would be the only way what John McCain said would make sense.

And again with the "make sure everything is revenue neutral" nonsense. Being revenue neutral is not how you reduce the deficit. It's more comparable to pissing into the wind.