John Stossel
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  • November 18, 2009 12:55 PM EST by John Stossel

    This Week's Column: Worse Than Taxes

    Last week on the O’Reilly Factor, Bill told me I wasn’t angry enough about taxes. In my syndicated column this week, I try to explain why I’m more angry about spending.  Taxes -- especially visible taxes -- are not the biggest problem we face:

    It's not that taxes don't anger me. They do. But I'm more angry about the arrogance of the ruling class. It reminds me of Walter Williams' riff: "Politicians are worse than thieves. At least when thieves take your money, they don't expect you to thank them for it."

    Taxes, even counting hidden taxes, are not the real measure of what the thieves take. The true burden of government, the late Milton Friedman said, is the spending level. Taxation is just one way government gets money. The other ways -- borrowing and inflation -- are equally burdens on the people. (State governments can't inflate, but they sure can borrow.)

    That, and more on the hidden taxes politicians love, here.

    This Week's Column: Worse Than Taxes

    Last week on the O’Reilly Factor, Bill told me I wasn’t angry enough about taxes. In my syndicated column this week [LINK TO COME], I try to explain why I’m more angry about spending.  Taxes – especially visible taxes -- are not the biggest problem we face:

    -- It's not that taxes don't anger me. They do. But I'm more angry about the arrogance of the ruling class. It reminds me of Walter Williams' riff: "Politicians are worse than thieves. At least when thieves take your money, they don't expect you to thank them for it."

    -- Taxes, even counting hidden taxes, are not the real measure of what the thieves take. The true burden of government, the late Milton Friedman said, is the spending level. Taxation is just one way government gets money. The other ways -- borrowing and inflation -- are equally burdens on the people. (State governments can't inflate, but they sure can borrow.)

    That, and more on the hidden taxes politicians love, here [LINK AGAIN].

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HipFierve

Wow, I did not heard about this topic up to now. Thx!

November 24, 2009 at 7:27 pm

Cnick

You brought up an interesting phrase, John: "the arrogance of the ruling class." That's the way it seems, that the politicians are the ruling class. But aren't they supposed to be servants to the public??? That's how our forefathers set up this republic!

November 20, 2009 at 2:42 pm

D. Saul Weiner

Clearly, government follows the path of least resistance in this and other matters. Don't like taxes? No problem, we will borrow, inflate, ... even give you a tax cut! We need a new bumper sticker saying "It's the spending, stupid"

November 19, 2009 at 9:50 pm

SaulOhio

Exactly. When the government spends money, it uses it to buy the services of people you would like to hire, buys resources you might like to buy, and so on. All that spending means resources not available to the people and made more expensive by the government bidding up the price. Everyone is worse off except the people who get the government's money. (which was your money!)

November 19, 2009 at 4:32 pm

LAD

Let's not ignore that government spending can also be a harm in itself. Government subsidies skew resource allocations and incrase the price of those goods and services subsidized by the government. Medicare spending increases the price of all healthcare. Student loans increase the price of higher education. Government spending can also negatively skew personal incentives (i.e., welfare can pay more than working, paying farmers not to grow crops, etc.)

November 19, 2009 at 4:08 pm

Shannon

I'm glad someone is saying this. Taxing is just one way to pay for spending. The spending level is the real problem. We could eliminate all taxes and pay for government spending simply by issuing bonds and printing money, but the consequences would not be good --- massive inflation and debt creation. Instead of a Balanced Budget Amendment, is there any grassroots support for a Spending Limitation Amendment like Milton Friedman presents in the appendix of "Free to Choose"?

November 19, 2009 at 11:21 am

Mike

Absolutely right John. If the government doesn't think you will accept a tax hike, they will essentially take out a loan on your future earnings and spend that money against your will. It's dispicable.

November 19, 2009 at 1:17 am

dave

Maybe all those politicians should do honest work and stop sucking the public dry. In a perfect world there wouldn't be this monopoly on government.

November 18, 2009 at 6:52 pm

Bill

You got it - profligate spending is a symptom of gross arrogance (hubris is a tragic flaw, always). "We" didn't elect anyone to spend with impunity, and tax/borrow to pay the bills. "We" elected (52-46% of voters) what we thought were rational, informed legislators. I look in the collective mirror to lay blame, and look forward to voting to effect corrective measures.

November 18, 2009 at 3:15 pm

S. McGinnis

I'm very concerned when Obama says that runaway spending could cause a double dip recession. . . BUT ONLY BECAUSE it probably means spending cuts in areas that we need to maintain--like defense. He'll never control spending on social programs where only a few benefit.

November 18, 2009 at 3:13 pm

K B

Yes, and I find it very ironic that President Obama is expressing concern over "runaway spending."

November 18, 2009 at 1:51 pm

About this Web Site

  • John Stossel joined FOX Business and FOX News in October 2009. His show, Stossel, airs on the Fox Business Network on Thursdays at 8 p.m. ET

    He is the New York Times best-selling author of Give Me A Break and Myths, Lies and Downright Stupidity. His "Give Me a Break" commentaries take a skeptical look at a wide array of issues, such as education, the economy, parenting, and more.

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