Chairman of the House Ways and Means Committee Sandy Levin (D-Mich) “flip flops”! America, Who’s looking out for you?

Posted on April 21, 2010 by

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“House Ways and Means Chairman Sandy Levin (D-Mich.) on Monday said tax cuts benefiting the wealthy and enacted under President George W. Bush will expire at the end of the year…” 

I thought this was the same congressman Levin who wanted to extend the Bush tax cuts because job creation was his priority!  At least that was what he said when he became Chairman of the House Ways and Means committee!  I guess I was right all along about Levin and the “political theater” in Washington DC.   

Read what I wrote about him weeks ago…

https://economicsforliberty.wordpress.com/2010/03/17/jobs-bill-passes-in-senate-job-creation-or-political-charade/

The Congressman had promised to extend the Bush tax cuts as part of his economic recovery agenda with job creation as his top priority.  If at that time the congressman understood the serious negative effects of a higher burden of taxation on investment and job creation, why would he change his position now?  If congressman Levin is so concerned with increasing tax revenues, then can someone tell him about the Laffer curve?  The Laffer curve predicts that a tax increase (decrease) will lead to lower (higher) tax revenues.  The most simple explanation for this negative relationship is that high taxation reduces the incentive to work, or to invest.  This is very basic economics: when the value of being unemployed exceeds the value of being employed, people simply choose to work less or not to work at all.   In addition, when taxes get too high, businesses move to  environments (tax havens) that are more conducive to investment activity.   Higher tax rates will only excacerbate the current high unemployment problem.  By allowing the Bush tax cuts to expire, Chairman Levin would be going back on his promise of job creation!

I can’t say that I’m surprised with the political theater staged in Washington DC by elected officials who make up GOVERNMENT.  I remember watching a movie years ago: “The distinguished gentleman” starring one of my favorite comedians, Eddie Murphy.  The movie was a story about a con-man who was elected to represent his state of Florida in Congress and thanks to special interest groups, he was able to extort millions of dollars legally, as a congressman.  The movie, although fictional, is somewhat an accurate representation of what happens in Government.  Everything is a calculated political move to satisfy one special interest group or another, because there are campaign contributions, political careers and millions of dollars at stake.  The SEC brought charges on Goldman Sachs at what seems to be a rather convenient time as the Obama administration was just starting to gear towards passing some tough regulation on the financial sector.   did I forget to mention that the Wall Street Journal published a list of the contributions made by Goldman Sachs to both Republicans and Democrats among which Barack Obama and Hillary Clinton?

It is a sad state of affairs when Americans cannot trust in their elected government anymore.  Let me borrow a phrase from our good friend Bill O’reilly: “America, who’s looking out for you?”

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