Taxes: 2011 Lump of Coal Award goes to ...
Welcome to Tax Vox鈥檚 fifth annual Lump of Coal Award recognizing 2011鈥檚 ten worst moments in fiscal policy. It is hard to imagine so much ugliness crammed into a mere 12 months. But after much thought and debate, the winners are:
10. The rating agency Standard & Poor鈥檚听for downgrading U.S. debt based upon a $2 trillion听. Then, after the mistake was pointed out, claiming the numbers didn鈥檛 really matter. This from the same folks who for years could not smell the stench rising from piles of subprime mortgage debt. 听听
9.听听
8. President Obama鈥檚 newfound populism.听Railing against a system of taxes that benefits millionaires and billionaires seems like pretty good Democratic politics. But Obama would be a lot more credible if he hadn鈥檛 helped听听the very law that makes it possible.听听
7. The Virginia lawmaker who wants to give people an听听for shooting their remains into space. The Commonwealth is dying for economic development, I suppose. 听听听听听听
6. The Super Committee.听John Kennedy paraphrased the Gospel of Luke when he said, 鈥淭o those whom much is given, much is expected.鈥� I suppose in the case of the unfortunate听, nothing was given. And they met expectations. 听听
5. 听The payroll tax fiasco.听Let鈥檚 see if I understand. Democrats finally found a tax cut they loved. Republicans finally found one they hated. Now Democrats insist on extending the听for just two months while House Republicans want to keep it going for a full year. As they used to say at the ballpark, 鈥淵ou can鈥檛 tell the players without a program.鈥� 听听听听听听听听
4.听听Here are three reasons why it makes no sense: It adds trillions to the deficit. It is deeply regressive. And, um鈥�.
3. The European Union.听A special international Lump of Coal Award goes to les politicians and bureaucrats who can鈥檛 seem to get out of their own way. If you need your cheese regulated, this is your crowd. If you want a functioning economic union, you may want to look elsewhere.
2. Newt Gingrich鈥檚 tax reform.听听So what if听听$1 trillion a year to the deficit, largely by giving those earning $1 million or more an average tax cut exceeding听$600,000. As Gingrich himself would tell you, it is a remarkable, historic idea. Yes, it is. 听
1. Congress. Perhaps not since 1861 has a Congress performed as poorly. In the end, lawmakers seem to have accomplished only two things: They (barely) kept the government running while driving听public confidence in their ability to govern听into the single digits. For governing on the principle of mutually assured destruction and building a record of historic failure in the face of real fiscal and economic challenges, the 2011 Lump of Coal Award goes to the entire U.S. Congress.
