Oct 15 2007
Where's The Welfare-State Surcharge?
Democrats love their political stunts. A week or two ago we were subjected to one such legislative gimmick, a war surtax.
Arguing it is unfair to continue to pass the cost of the war in Iraq to future generations, three senior House Democrats Tuesday offered a long-shot plan to raise taxes to pay for the $150 billion bill for the war in 2008.
At the same time, one of the Democrats, Rep. David Obey of Wisconsin, chairman of the House Appropriations Committee, announced he would delay action on the White House’s war request for next year, saying he refuses “to continue the status quo.”
The tax plan, unveiled by Obey and Reps. John Murtha, D-Pa., and Jim McGovern, D-Mass., would require low- and middle-income taxpayers to add 2 percent to their tax bill. Wealthier people would add a 12 to 15 percent surcharge, Obey said.
Sponsors of the tax plan appeared more interested in making a point ? getting people to focus on the cost of the war ? than offering it as a serious proposal.
If a surtax is an appropriate way to get people to focus on costs, I have a few proposals. We’ve got mandatory spending, on things like welfare, medicare, medicaid and social security, which are simply burgeoning out of control. In the future they will completely overshadow the rest of the federal budget. Even defense isn’t going to come close to the expense of running the welfare state. These charts from Heritage’s “Federal Revenue and Spending: A Book of Charts” illustrates what costs we really need to concern ourselves with.
I’m sure you also notice the exponential growth in interest which is projected to occur. The reason for that is simple. As entitlement programs explode the federal budget, the deficit is going to grow right along with them. As a percentage of GDP, the deficit is currently projected to take off before 2020.
This rapid growth is going to be fueled entirely by the growth in entitlement spending. So in the previous chart, the interest payments can also be attributed to our welfare state programs.
Given all this, when will democrats propose a nanny-state surcharge to highlight these unsustainable costs?


