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Thursday, April 24, 2008
In the News on April 24, 2008
By Eric Livingston :: 3 Comments :: Email to a friend
 

An op-ed in today's Washington Times blasts liberal policy makers in Washington who are looking to raise taxes during a time when our economy needs as much stimulus as it can get.

And the "R" word — as in redistribution of incomes — is being raised by these critics, too, a political killer in any election cycle, but especially in an economic downturn that is squeezing incomes across the board.

The incoming fire isn't just from Republican John McCain, who thinks raising taxes in a sick economy is sort of like the 18th century practice of bleeding. Criticism is coming from the news media and from academia.

"Why raise taxes at all in an economic slowdown? Isn't that going to put a further strain on people?" CNBC economic reporter Maria Bartiromo asked Mr. Obama a few weeks ago. It's a question that could define the rest of the presidential election and boost GOP prospects at a time when the No. 1 issue is the economy, dwarfing the war in Iraq.

Picking up on Mrs. Bartiromo's pointed question, ABC News anchors Charlie Gibson and George Stephanopoulos also pummeled both Democratic candidates last week for their tax policies.

"If the economy is as weak a year from now, as it is today, will you ... persist in your plans to roll back President Bush's tax cuts for wealthier Americans?" Mr. Stephanopoulos asked Mrs. Clinton.

Mrs.Clinton said, yes, she would raise the top 35 percent marginal tax rate on incomes over $250,000 "to the rates they were paying in the 1990s" under President Clinton, which would lift them to a confiscatory 40 percent.

"Even if the economy is weak?" an incredulous Mr. Stephanopoulos asked.

"Yes," she replied without hesitation. "I do not believe it will detrimentally affect the economy by doing that."

But business advocates and economists dispute that claim, saying it isn't just wealthier Americans who pay the top income tax rate, but also 25.8 million small businesses, many of them family-run operations, who create about 75 percent of the jobs, according to the Small Business Administration.

"What Clinton and Obama fail to realize is that small business entrepreneurs also pay that marginal tax rate and raising it will hurt them and by extension hurt the U.S. economy," said economic policy strategist Cesar Conda, who was one of Mitt Romney's campaign advisers.

Sadly, the Democrats' agenda doesn't include small businesses who earn over $250,000 but do not consider themselves rich. Many, in fact, are struggling just to keep their heads above water.

Raising capital gains taxes.  Raising the income cap on social security taxes.  Raising the marginal income tax rate.  This is not the formula for an economic stimulus, but will only increase the likelihood of a recession.  Liberals love to say that they are just taxing the rich, but it is always small businesses and the middle class who end up footing the bill through lost jobs and a slowdown in economic growth.  "Taxing the rich" is the triumph of ideology over economic sense.

Comments
By keeeemosabe @ Friday, April 25, 2008 12:31 PM
Tax cuts may be in order if we could have seen the disaster of an extra bonus porkbarrrel Iraq war and avoided it (or at least won it in a timely responsible manner. The redistribution of money comes from US taxpaywers to war profiteeers. You could call ift porkbarrel politicis, if reality were honored. Do you really want free wars that no one has to pay for? There are many profiteeers who sell their souls for some war profits. One should never compartmentalize taxes and the economy from an extra bonus porkbarrel war. Realize that they are very interconnected.

By keeeemosabe @ Friday, April 25, 2008 1:05 PM
aeneid1. So the graduated tax seems unfair to billionaires? Take comfort that sales taxes take a hugely higher proportion of income form the poor and middle class. Before you play the victim, be sure to see the whole picture, else some may think you like playing the victim...and laugh a little. That's what I do when I see LushRimbaugh, and billoreilly, are motivated by their tax situation. If you listen closely, that is what they are all about. So shallow.

By aeneid1 @ Friday, April 25, 2008 11:47 AM
The graduated income tax we have now is a failure. It simply allows the libs to play a class warfare game every political cycle. It needs to be scrapped now. The flat tax would serve us better.

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