Marco Rubio Decimates Tim Geithner
Every clip I've ever seen of Marco Rubio enhances his reputation as the rising star of the conservative movement. His grilling of Tim Geithner at yesterday's Small Business and Entrepreneurship Committee Hearing is no exception.
If Sen. Rubio hadn't been limited to a meager three minute Q&A with the Treasury Secretary, I'd have liked to see him bring up the additional point that, as per "Hauser's Law," higher tax rates don't lead to higher revenues. Writing last year in the WSJ, Kurt Hauser explained that
[n]one of the personal income tax or capital gains tax increases enacted in the post-World War II period has raised the projected tax revenues.
Over the past six decades, tax revenues as a percentage of GDP have averaged just under 19% regardless of the top marginal personal income tax rate. The top marginal rate has been as high as 92% (1952-53) and as low as 28% (1988-90)...
Over this period there have been more than 30 major changes in the tax code including personal income tax rates, corporate tax rates, capital gains taxes, dividend taxes, investment tax credits, depreciation schedules, Social Security taxes, and the number of tax brackets among others. Yet during this period, federal government tax collections as a share of GDP have moved within a narrow band of just under 19% of GDP.
Why is this the case? Higher taxes cause taxpayers to "shift, hide, and underreport income." Additionally, they depress entrepreneurial activity -- which leads us back to the crux of Sen. Rubio's argument: higher taxes kill jobs.
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Dec '10
Re: Marco Rubio Decimates Tim Geithner
Is it my imagination or does Geithner physically look like a rat? There is just something about him that screams "don't trust me!"
Oct '10
Re: Marco Rubio Decimates Tim Geithner
I've always thought there was something incoherent about the argument that tax increases are crucial because if we don't we jeopardize economic recovery and so we going to enact a tax increase that's so small on such a small group of people that it won't do any economic harm. The stakes are dire but the tax increases are trivial. How serious is the problem if it only requires such an insignificant change? Are we really on the margins where we're the top rate is just a few points away from runaway economic growth?
Aug '11
Re: Marco Rubio Decimates Tim Geithner
I don't consider myself an economist, but some of this stuff (the Laffer Curve, Hauser's Law) just makes logical sense to me. I continually wonder how people like Geithner and Obama -- allegedly "smart" people -- don't get it.
Dec '10
Re: Marco Rubio Decimates Tim Geithner
Diane Ellis, Ed.:
Why is this the case? Higher taxes cause taxpayers to "shift, hide, and underreport income." Additionally, they depress entrepreneurial activity -- which leads us back to the crux of Sen. Rubio's argument: higher taxes kill jobs. ·
I'm found of saying that a tax on anyone is a tax on everyone. We're all connected, and it doesn't matter if you drain water out of the deep end or the shallow end, either way the pool gets shallower.
May '11
Re: Marco Rubio Decimates Tim Geithner
I'm not sure this is anyone's Law, but it does seem to always work out this way: A dollar in nominal new taxes brings in 80 cents of revenue, and leads to $1.20 in new spending.
Jul '10
Re: Marco Rubio Decimates Tim Geithner
Why aren't the "A-Listers" (like Rubio, Ryan, et al.) running for President this year?
Is it the inevitability of Obama's re-election?
Sep '10
Re: Marco Rubio Decimates Tim Geithner
The fact that a Small Business and Entrepreneurship Committee even exists is in itself a bad thing. Just what is it that they produce that we want?
Dec '10
Re: Marco Rubio Decimates Tim Geithner
Nothing to wonder about. The Left's concern is not prosperity. It is the accumulation of centralized power in their hands. The only way to win a zero-sum game is to leverage your power to your advantage.
Re: Marco Rubio Decimates Tim Geithner
Why? It's just one of many Senate committees (none of which produce anything, but exist to provide oversight). This one concerns itself with reviewing all legislation and other matters that would affect the Small Business Administration.
Re: Marco Rubio Decimates Tim Geithner
To add to Rubio's arsenal for next time: Alan Reynolds, "Obama's Soak-the-Rich Tax Hikes Won't Work":
Dec '10
Re: Marco Rubio Decimates Tim Geithner
Geithner is a hack carrying water for his boss. He speaks and thinks no differently than Eric Holder (the only cabinet secretaries who will never go away). The purpose of raising taxes on millionaires and billionaires is to challenge Republicans in a duel to vote against it.
In the one hand our historic first Islamic apostate president is waving in the air a booklet with jobs written on the cover, in the other the pistol of envy and resentment that he fires at every audience in every speech without regard to relevancy, beginning at the joint session of congress.
Demagoguing taxes on millionaires and billionaires has always been the Democrats’ formula for keeping the GOP in the minority and all of the majority’s powers for themselves.
Jul '10
Re: Marco Rubio Decimates Tim Geithner
Geithner's got nothing here. No theory. No coherent response.
"Tough decisions?" Try: ill-advised decisions.
Jul '10
Re: Marco Rubio Decimates Tim Geithner
Michael Tee: Why aren't the "A-Listers" (like Rubio, Ryan, et al.) running for President this year?
Is it the inevitability of Obama's re-election? · Oct 19 at 11:37am
For the young'uns, it's seasoning. Talent is nice, but for a real shot bring some accomplishments. Rubio was another Tea Party figure the establishment was all huffy and puffy about. Until he kicked butt. Then they all stopped including him in their little list of Tea Party disaster candidates.
May '10
Re: Marco Rubio Decimates Tim Geithner
My God, there seem to be so many sides to Geithner's mouth even he can't figure out which one to speak out of. Judging from his performance here, I can see how he couldn't figure out how to pay his taxes. Heaven help us that this guy is in a position of authority.
Senator Rubio is just great. Straight-talking and plain spoken. Wish he was president.
May '10
Re: Marco Rubio Decimates Tim Geithner
I'm sorry, I don't see any "decimating" going on in this clip. Rubio asks some gotcha questions about who said what, and Geithner does his best to respond.
While I think Rubio's right on the policy, and Geithner's just carrying water for his boss (as another person said), let's not get too excited about clips like this. When I imagine "decimating" an opponent in a debate, I envision substantive arguments, empirical evidence (like that in comment #10), logic, and the other side left stuttering, completely unable to answer. In this clip Rubio looks a bit disrespectful and petty, playing gotcha with soundbites and quotes. You'll only agree he's really won the debate if you already see things from his side.
Did we watch the same clip?
Edited on October 19, 2011 at 9:46pmNov '10
Re: Marco Rubio Decimates Tim Geithner
Geitner's hair looks like it's slipping. Too many brow-beatings like this one, I guess.
Aug '11
Re: Marco Rubio Decimates Tim Geithner
Don't feel sorry for Tim Geitner. Once he leaves the administration, he'll do just fine, like all the Democrat apparatchiks. Larry Summers, Christina Romer, Peter Orszag, Rahm Emmanuel - the list goes on and on.
They all make fortunes in the financial sector. Not by selling their expertise - no business in its right mind would pay big bucks for that. They earn their money by making sure that their rent-seeking bosses get their phone calls returned.
Jun '10
Re: Marco Rubio Decimates Tim Geithner
Geithner is positively incoherent.
Apr '11
Re: Marco Rubio Decimates Tim Geithner
Geitner was also eviscerated by Olympia Snowe. When you're getting it that bad from even the squishiest of the GOP, you know you are out of touch.
Edited on October 20, 2011 at 3:06amMar '11
Re: Marco Rubio Decimates Tim Geithner
This would be more impressive if Mr Rubio were running for President. As he is not, he is a wimp.