A Distinction Without A Difference

How can we hear so often that there will be no tax increases, but trillions of dollars in new entitlements and future obligations (aka debt) are being proposed? How will it all be paid for? Are politicians lying? Or is this simply a massively expensive word game, about to be played well into the future of every tax paying citizen of this country?

In the world of government taxation, there are multiple different categories of tax deductions, tax exemptions, tax preferences, tax benefits, tax credits and more. Quickly it can become overwhelming, even confusing for the average citizen. Enough so that distinctions can be made without actually honoring the original meaning.

Here is just a partial list of the ways that regular taxes can be stated as not increasing, but the total tax bill being paid does:

• Installing automatic increments based on Consumer Price Index (CPI)
  
• Failing to renew tax credits
  
• Repealing of tax breaks and incentives
  
• Allowing of automatic tax increases to occur
  
• Adjusting tax brackets (bracket creep)
  
• Calling the increase temporary
  
• Indexing to something other than inflation (indexing higher)
  
• Enacting surtaxes with special conditions
  
• Increasing the sources (of income) subject to taxation
  
• Decreasing Alternative Minimum Tax (AMT) exemptions (overrides regular tax rates and breaks)
  
• Doubling taxation of businesses and individuals (via dividends and interest)
  
• ...
  

So in politics it may be considered truthful to say one thing and then subvert that statement with indirect, conflicting actions. Possibly the politicians themselves have been duped by their subculture to believe in a different form of honesty (if it can be called that). Maybe what isn't said is just as, if not more important.

Determining what the words in a political speech mean can be difficult. Citizens must keep themselves informed and diligent concerning issues affecting the nation. If we don't, we risk electing politicians who are being honest in a dishonest way.

Now how our European allies will reconcile the US dropping support for the missile defense shield after pledging to support it "As long as the threat from Iran persists" given recent knowledge that Iran is "...on the way to developing a missile system able to carry an atomic warhead..." might require a different analysis.

Regardless, words have meaning. When they're coming from people who have the power to affect entire nations for generations to come, people everywhere need to listen and remember them.