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Politics : Stockman Scott's Political Debate Porch -- Ignore unavailable to you. Want to Upgrade?

To: American Spirit who wrote (11189)	1/7/2003 8:34:32 PM
From: stockman_scott	Respond to of 89467

Bush's unkind cuts A BOSTON GLOBE EDITORIAL 1/7/2003 PRESIDENT BUSH'S proposal to drain $600 billion in tax cuts from the federal budget over the next 10 years would benefit a relatively few Americans - but they are the favored few. Emboldened by Republican victories in November that put his party in control of Congress, Bush is expected to call today for accelerating cuts in income tax rates and eliminating the tax on stock dividends, among other changes. This, his analysts say, would boost the stock market and stimulate the economy. But the stock market and the economy are not the same thing. Despite the great influx of average taxpayers into the market through mutual funds and 401(k) plans, the Federal Reserve estimates that only about half of American families own any stock at all, and dividends are still paid overwhelmingly to the wealthiest Americans. According to the Center on Budget and Public Policy Priorities, the top 1 percent of tax filers - those making more than $300,000 - will get 42 percent of the benefit from eliminating the dividend tax. Accelerating the cuts in income tax rates will similarly benefit those with the highest incomes. Last week Bush complained that pointing out these realities amounts to waging ''class warfare.'' But Senator Harry Reid of Nevada, a Democrat, had it about right when he said Sunday that the real class war is being waged by Republicans against the poor and middle classes, who will benefit little from the tax cuts but will be hurt by cuts in services - especially Medicare and Social Security - that will be threatened as federal deficits balloon. Bush's proposal is particularly cynical in linking the tax cuts to revenue sharing for cash-strapped states and an extension of unemployment benefits for the 750,000 Americans whose checks ran out on Dec. 28. Both should be passed quickly on their own merits and not be used as bait - or ransom - for the larger tax bill. The states are facing their worst fiscal crash in 60 years, with a revenue gap of between $60 billion and $85 billion for the fiscal year beginning in July. Given costly federal mandates such as the ''No Child Left Behind'' education law, a hand up from Washington is only fair. Also, like the rebates in the Democrats' alternative plan unveiled yesterday, the $10 billion in aid to states would more immediately stimulate the economy. The dividend cut would not be felt until April 2004. The White House said yesterday that the full Bush proposal - including the elimination of the so-called marriage penalty and a bigger child tax credit - would save 92 million taxpayers an average of $1,083 a year. But the concentration of wealth at the top has become so great that the majority of taxpayers are below the ''average.'' That inequity would only be made worse by the president's costly scheme. boston.com

To: American Spirit who wrote (11189)	1/8/2003 9:57:50 AM
From: Jim Willie CB	Read Replies (3) \| Respond to of 89467

I repeat: you are an economic analyst moron tax cuts stimulate increased business activity lower tax rates produce higher tax revenue this is not a static concept, things change in response I repeat: this is far over your head and comprehension go work somewhere in a soup kitchen do something you understand your stupidity is hurting and offending my sensibilities / jim