Hey, remember that time during the campaign when Candidate Obama said he was going to cut taxes for middle class families across the country? Me too. That was awesome. This is not awesome:

Gregory Mankiw

“A family of four with an income, say, of $54,000 would pay $9,900 for health care. That covers only about half the actual cost. Uncle Sam would pick up the rest.

Now suppose that the same family earns an additional $12,000 by, for example, having the primary earner work overtime or sending a secondary worker into the labor force. In that case, the federal subsidy shrinks, so the family’s cost of health care rises to $12,700.

In other words, $2,800 of the $12,000 of extra income, or 23 percent, would be effectively taxed away by the government’s new health care system.

That implicit marginal tax rate of 23 percent is a significant disincentive. And it comes on top of the explicit marginal tax rate the family already faces from income and payroll taxes. Altogether, many families would face marginal rates at or above the 50 percent level that animated the Reagan supply-side revolution.”

And let’s not forget the promise by Democrats to roll back the Bush tax cuts next year. Speaking of which, I’d say it’s even more important that people pay attention to what the real left has to say about all this:

Deficit financed

“This includes the revenue loss of $2.11 trillion that results directly from the Bush tax cuts as well as the $379 billion in additional interest payments on the national debt that we must make since the tax cuts were deficit-financed.”

The phrase “deficit financed” illustrates the fundamental economic disconnect between the left and the right in American politics. That phrase implies that tax cuts are payments from the government which cost it money. This is misleading because it distorts the reality of ownership. In other words, that money does not belong to the government. It was not earned by anyone in the political class. That money was seized by force from working citizens – rich, middle class and poor. Taxes are not voluntary. Yet.

My argument is certainly not that all taxes are immoral. Neither is my argument that tax cuts always pay for themselves. My argument is that excessive taxes are immoral and that citizens are not obliged to endure them. Further, government does not have an indisputable power to seize whatever income it wants and spend that money on whatever it will just because we happen to live in a watered down democracy.

Government subsidized health care on the other hand is money taken by force from one class or group of citizens and given to another with an exorbitant administrative charge tacked on for the thieves currently in power – private and public. The taxed class has every right – indeed every duty – to object to this seizure of its income should it disagree with any aspect of how that money is taken or spent or with the amounts in question.

Government run health care is deficit financed. Government does not have anywhere near the money to pay for this new bureaucracy. Indeed, it does not have the money to pay for most of the services it allegedly guarantees to its citizens already. Medicare, Medicaid and Social Security are three examples. Hence the exorbitant spiraling debt our country currently faces.

The left argues that since we are so badly in debt, the government is justified in taking even more of our tax dollars. Simply continue to take more money from the bottomless pit of taxpayer finances and we can one day live in a liberal utopia of government sponsored handouts. This solution has never – not in the entire span of human history – proven to be feasible.

The founding generation objected – in part – to taxation without representation. In other words, the mother country Britain continued to take more and more money from the lucrative colonies without allowing them any voice in the government which was taxing them. As the Reverend Ebenezer Baldwin of Danbury once wrote, this “must convince us that we shall be taxed so long as we have a penny to pay, and that new offices will be constituted and new officers palmed upon us until the number is so great that we cannot by our constant labor toil maintain anymore.”

Sound familiar? The difference of course is that we are represented. Allegedly. Even so, that does not mean that we are obliged to continue to surrender more and more of our wealth to prop up an ever more corrupt and unjust governing class. Tax cuts are not deficit financed. Government is taxpayer financed. Should taxpayers at some point determine that said taxes are unjustly squandered, we are not obliged to continue to pay them. Taxpayers are citizens, not slaves.