Bush Fights To Make Tax Cuts Permanent
Washington Times:
President Bush on Monday campaigned to make his tax cuts permanent, saying that allowing them to expire would be harmful to an already limp economy. The message was perhaps aimed more at voters than lawmakers.
The Democratic-led Congress has shown little interest in renewing most of the tax cuts, and Republicans are seeking to use the issue as political leverage in the upcoming presidential campaign. Democratic presidential candidates Barack Obama and Hillary Rodham Clinton both have called for raising income taxes on the wealthiest Americans.
Bush used the five-year anniversary of his signing of the Jobs and Growth Tax Relief Reconciliation Act of 2003, which lowered rates on capital gains and dividends, to make his case that Congress should extend his first-term tax cuts set to expire in 2010.
“The best way to deal with uncertainty is to let people keep more of their money,” Bush said following a round-table discussion at the White House complex by current and former administration economic advisers and businessmen.
“Tax cuts have been an engine for economic vitality,’ he said. “Given the fact that tax cuts have worked, what will be the Congress’ response?”
Edward Lazear, chairman of the Council of Economic Advisers, said not renewing the tax cuts amounts to a tax increase.
“It’s always important to remember that taxation means taking money from the people,” Lazear said. “I view taxphobia (a fear of raising taxes) as a blessing not an affliction.”
Raising taxes especially in an economic downturn is ill-advised, he said.
“We can’t ignore the reality which is that we are in a slow-growth period right now,” Lazear said. “I don’t think this period will end up being called a recession, but there is no doubt that the economy is weaker than we would like it to be.”
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Bush should have made them permanent in the first place! If obama gets elected he will just allow them to expire which will result in probably one of the biggest tax increases in our history.
June 2nd, 2008 at 11:10 am“Raising taxes especially in an economic downturn is ill-advised, he said.”
Let’s hear what Obama or Hillary have to say about that!
Raising taxes anytime is bad economic policy, people can’t spend money they don’t have.
When there’s a single thief, it’s robbery. When there are a thousand thieves, it’s taxation.
The taxpayer - that’s someone who works for the federal government but doesn’t have to take the civil service examination. ~Ronald Reagan
June 2nd, 2008 at 11:14 amObama says raise the taxes on the “rich,” which he defines as income over $200k or over $1m, depending on when he’s talking. Well, those are the people who file as LLC’s, they pay individual rate as small businesses. They create the most jobs in this country. Raising marginal rate on highest incomes is taxing job creators–we can expect shrinking of business activity. Also, if you tax people’s hard earned money away, they have less incentive to make more of it. So, they aren’t going to go out and invest, create jobs, buy stuff. Taxation is a disincentive to create anything of value. Why can’t these Presidential candidates be forced to take elementary economics training? Of course, most dems don’t care about this, because they are closet socialists anyway.
June 2nd, 2008 at 1:57 pm