| “Free Market Guy” Ignores Lessons of Recession |
| Posted by Don Kusler (don) on Sep 21 2011 at 3:35 PM |
They Really Said It
GOP presidential candidate Gary Johnson in a recent discussion with an WFW New Hampshire activist called for cutting Medicare funding, eliminating income taxes on the wealthy and corporations, and promoting more job-killing imports. Apparently unaware or unconcerned that it was a “free market” run wild that ran the economy into the ditch, Johnson proudly dubbed himself a “free market guy.”
What It Really Means
Mike Goudzwaard approached the former New Mexico governor—who is scheduled to participate in a Florida debate with the Republican presidential frontrunners this week—at a campaign stop in Keene on Sept. 20. Johnson said he would end Medicare as a guaranteed program of the federal government, one that serves all who qualify; turning it instead into a rigid fixed-dollar “block grant” to the states, where services could well be cut or beneficiaries denied coverage if the allotted money ran out.
He would also replace today’s progressive income tax—under which those with higher incomes pay at higher rates—with a flat 23% sales tax on everyone, from the lowest earners to the fabulously wealthy. Since working families have to spend more of their income on necessities like food, clothing and shelter, they would be hit hardest by such a national sales tax.
Johnson said he would eliminate all import tariffs, thus allowing cheap and often dangerous goods to flow even faster into our country. This would decimate national industries, increase unemployment, and threaten consumers.
He would also replace today’s progressive income tax—under which those with higher incomes pay at higher rates—with a flat 23% sales tax on everyone, from the lowest earners to the fabulously wealthy. Since working families have to spend more of their income on necessities like food, clothing and shelter, they would be hit hardest by such a national sales tax.
Johnson said he would eliminate all import tariffs, thus allowing cheap and often dangerous goods to flow even faster into our country. This would decimate national industries, increase unemployment, and threaten consumers.
What Really Should Be Done
Medicare should be maintained as a national program that responds to need. Its fiscal health should be improved as part of a general reform in how medical care is delivered and paid for. Not only should the progressive income tax be preserved, but it should be made significantly more progressive, in line with President Obama’s tax plan, so that billionaires like Warren Buffet aren’t paying tax at a lower rate than their assistants. International trade should be conducted on a fair basis, one that respects the rights of workers and local industries and the health of consumers.
Today’s agonizing Great Recession was brought on by previous “free market guys” in high office who cut taxes on the rich, eliminated necessary regulations, and generally allowed irresponsible businesses to crash our economy. Given the devastation of the past three years, a rational response would be a return to fair taxation and responsible regulation, a policy on which a broad-based, stable prosperity could be built. But Gary Johnson apparently doesn’t think we’ve all yet suffered enough.
Today’s agonizing Great Recession was brought on by previous “free market guys” in high office who cut taxes on the rich, eliminated necessary regulations, and generally allowed irresponsible businesses to crash our economy. Given the devastation of the past three years, a rational response would be a return to fair taxation and responsible regulation, a policy on which a broad-based, stable prosperity could be built. But Gary Johnson apparently doesn’t think we’ve all yet suffered enough.