A Bush Without Boldness (& Mindless Tax Cuts).

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  • Nickdfresh
    SUPER MODERATOR

    • Oct 2004
    • 49203

    A Bush Without Boldness (& Mindless Tax Cuts).

    Sunday, Feb. 05, 2006
    A Bush Without Boldness
    In his State of the Union speech, Bush called for cutting our Middle Eastern oil imports; then came a retreat

    By JOE KLEIN

    On the day before President Bush's eminently disposable State of the Union speech, I heard a story that I'll never forget. It was told by Iowa Governor Tom Vilsack, who was addressing a small audience in Washington. A military helicopter pilot from Iowa, serving in Iraq, was killed when he noticed a ground-to-air missile headed his way and, in a split-second reaction, swerved his chopper so that he and his co-pilot would take the hit and his 18 passengers would be spared. Vilsack placed a condolence call to the widow, who stopped him in midsentence. "I think about it this way," the woman said. "Those 18 men needed my husband more in that split second than I'll need him for the rest of my life."

    Vilsack, who is probably running for President—and should be—used the story to illustrate the sacrifice and sense of community that is at the heart of a successful democracy. The current Administration, he said, "is ripping away at the fabric of the American community." The story lingered as I listened to Bush once again ask nothing from the American people in his speech and, worse, issue his annual call for lower taxes. The President's addiction to tax cuts has become rhetorical boilerplate, so totally expected that it's no longer noticed. But I found it particularly annoying this time.

    There was a case for mild cuts when Bush came to office. The economy was stalling, and there was a budget surplus. We have big deficits now, and an economy chugging along at 4% growth. Bush's addiction is a reflection of ideology run amok and a twisted reading of recent history. Yes, the economy began to pick up when Ronald Reagan offered his famous 1981 tax-reduction plan, but it continued to grow when Reagan raised taxes in 1982 and '83. And how to explain the economic boom of the 1990s? Bill Clinton's tax increases for the wealthy, which were smaller proportionally than Reagan's, certainly didn't seem to dampen the irrational exuberance of the wealthy.

    A case can be made for targeted tax cuts to encourage socially beneficial behavior like research into alternative cars and fuels. A case can also be made—though Bush would rather see Brokeback Mountain than make it—for targeted tax increases to discourage things like, well, an addiction to oil. But what are we to make of the perennial conservative call for the elimination of the estate tax, which would cost $750 billion over 10 years? Republicans have done a clever bit of marketing here by calling it the death tax. Perhaps Democrats should nickname estate-tax repeal the Paris Hilton Empowerment Project. Whatever you call it, it is an obscenity to ask nothing of heiresses while helicopter pilots are giving everything. The tax-cut obsession certainly makes it hard for the President to propose anything useful in his State of the Union speeches. His vaunted energy independence initiative was a mirage, a minor reshuffling of programs that already exist or a reinstatement of those cut in previous years. At least one of Bush's proposals—the goal of reducing our dependence on "Middle Eastern" oil 75% by 2025—resulted in an embarrassing retreat. Bush's Energy Secretary, Samuel Bodman, retracted the pledge a day later, saying the President had offered an "example," not a promise.

    Actually, I missed Bush's exhilarating, if oft misguided, boldness. And there were ways Bush could have broken new ground last week and remained true to his values. Some conservatives—including the authors of a recent cover story in the Weekly Standard magazine—believe it's time for Republicans to embrace a mandatory universal health-insurance plan. Representatives of American industry—which is staggering under its health-care burden—have been meeting quietly with labor unions, think tanks and interest groups in Washington to try to find common ground. In 1993, Senator John Chafee proposed a Republican model of universal coverage that subsidized the working poor and taxed the rich to pay for it; he had the support of 20 Senate G.O.P. colleagues, more than enough for passage, if the Clintons had been willing to compromise. They weren't, and later regretted it. Perhaps the President should reintroduce a version of the Chafee plan and see if the Democrats are still opposed. That would be a fight worth having.

    But Bush seemed too tired, defensive and preoccupied by a multitude of Middle Eastern woes to be up for any such heavy lifting. His speech was a dispiriting spectacle for both parties. The Democrats' only noticeable contribution came when they, led by a smirking Hillary Clinton, applauded the failure of Social Security reform. I kept thinking about that woman out in Iowa, wondering if she was watching, embarrassed by how unworthy this government is of her husband's sacrifice.


    Copyright © 2006 Time Inc. All rights reserved.
    Reproduction in whole or in part without permission is prohibited.
  • Warham
    DIAMOND STATUS
    • Mar 2004
    • 14589

    #2
    The economy was stalling when Bush took office??? NO WAY!

    You mean to tell me Bush didn't take over Clinton's utopian economy when he was inaugurated???

    I can't believe it. It sounds like revisionist history.

    Comment

    • Hardrock69
      DIAMOND STATUS
      • Feb 2005
      • 21888

      #3
      It is fact.

      Dammit, you act like a fucking TROLL!

      It does not even matter to you that this stuff is factual...you act like a fucking retarded 2-year-old and deny it could possibly be true. I have seen you do this time and time again.

      TROLL.

      Grow up!

      Comment

      • Warham
        DIAMOND STATUS
        • Mar 2004
        • 14589

        #4
        I'm one of those people that believe that tax cuts are good, and it's proven right by looking into the government coffers. They are getting more revenue now than when Clinton was in office, even though everybody is paying less in taxes.

        Comment

        • knuckleboner
          Crazy Ass Mofo
          • Jan 2004
          • 2927

          #5
          the tax cuts were and are irresponsible, if for no other reason, then because they weren't really done in the context of the overall budget situation.

          tax cut and spend isn't exactly fiscally sound.

          Comment

          • Warham
            DIAMOND STATUS
            • Mar 2004
            • 14589

            #6
            Doesn't matter. When the government is bringing in more money than it would have without the tax cuts, it throws out any arguement about it being irresponsible. Plus the economy is better than it would have been otherwise as well.

            Comment

            • FORD
              ROTH ARMY MODERATOR

              • Jan 2004
              • 58783

              #7
              Originally posted by Warham
              Doesn't matter. When the government is bringing in more money than it would have without the tax cuts, it throws out any arguement about it being irresponsible. Plus the economy is better than it would have been otherwise as well.
              How delusional are you?

              Chimpy has created the greatest deficit in the HISTORY OF THE HUMAN RACE. A debt literally larger than that of the 41 elected Presidents (& Jerry Ford) combined.

              How the fuck can you call that an "improvement" over 8 years of prosperity??
              Eat Us And Smile

              Cenk For America 2024!!

              Justice Democrats


              "If the American people had ever known the truth about what we (the BCE) have done to this nation, we would be chased down in the streets and lynched." - Poppy Bush, 1992

              Comment

              • Warham
                DIAMOND STATUS
                • Mar 2004
                • 14589

                #8
                Originally posted by FORD
                How delusional are you?

                Chimpy has created the greatest deficit in the HISTORY OF THE HUMAN RACE. A debt literally larger than that of the 41 elected Presidents (& Jerry Ford) combined.

                How the fuck can you call that an "improvement" over 8 years of prosperity??
                I was talking about the tax cuts, FORD.

                I do have a problem with Bush spending like a liberal. That, I'll give ya.

                And give the credit for the Clinton years' prosperity where it really should belong: Ronald W. Reagan.

                Comment

                • Nickdfresh
                  SUPER MODERATOR

                  • Oct 2004
                  • 49203

                  #9
                  Originally posted by Warham
                  I'm one of those people that believe that tax cuts are good, and it's proven right by looking into the government coffers. They are getting more revenue now than when Clinton was in office, even though everybody is paying less in taxes.
                  How 'bout when REAGAN raised taxes?

                  BTW, we're also spending a hell of a lot more than when CLINTON was in office...
                  Last edited by Nickdfresh; 02-10-2006, 04:28 PM.

                  Comment

                  • Warham
                    DIAMOND STATUS
                    • Mar 2004
                    • 14589

                    #10
                    Originally posted by Nickdfresh
                    How 'bout when REAGAN raised taxes?
                    You mean after the Economic Recovery Tax Act of 1981, when a 25% across the board cut happened? Was this last one 25%?

                    A couple points about 'Reaganomics' that some people will tend to gloss over:

                    * Real economic growth averaged 3.2 percent during the Reagan years versus 2.8 percent during the Ford-Carter years and 2.1 percent during the Bush-Clinton years.
                    * Real median family income grew by $4,000 during the Reagan period after experiencing no growth in the pre-Reagan years; it experienced a loss of almost $1,500 in the post-Reagan years.
                    * Interest rates, inflation, and unemployment fell faster under Reagan than they did immediately before or after his presidency.
                    * The only economic variable that was worse in the Reagan period than in both the pre- and post-Reagan years was the savings rate, which fell rapidly in the 1980s. The productivity rate was higher in the pre-Reagan years but much lower in the post-Reagan years.

                    Comment

                    • Nickdfresh
                      SUPER MODERATOR

                      • Oct 2004
                      • 49203

                      #11
                      Posted on Fri, Feb. 10, 2006


                      Roll out the barrel of red ink

                      By JACK Z. SMITH
                      Star-Telegram Staff Writer

                      A cherished myth of conservative Republican ideologues is that large federal tax cuts spawn these glorious developments:

                      The tax cuts stimulate the economy by giving individual Americans more money to spend and businesses more money to invest.

                      The juiced economy increases individual and corporate incomes to such an extent that federal tax revenues rise sharply and budget deficits shrivel.

                      Everyone lives happily ever after.

                      I've repeatedly heard this line of wishful thinking from the GOP faithful whenever I've written columns expressing disenchantment with the record federal budget deficits rung up during the fiscally reckless and demonstrably feckless administration of George W. Bush.

                      Those readers protesting my columns often fondly recall another tax-cutting champion of yesteryear, the late President Reagan. But they inevitably fail to mention that Reagan never submitted a balanced budget to Congress; that he presided over then-record budget deficits that nearly tripled the national debt; and that the huge 1981 tax cuts that he championed were followed by tax increases passed by Congress to help scale back the skyrocketing deficits.

                      But that's history. So let's talk about the present.

                      As President Bush enters his sixth year in the White House, his administration is projecting a record federal budget deficit of $423 billion for fiscal 2006, which ends Sept. 30.

                      That would top the previous red-ink record of $412 billion that his administration set in fiscal 2004, which exceeded the previous record of $375 billion that his administration set in fiscal 2003, which eclipsed the previous record of $290 billion set during the administration of the first President Bush.

                      On Monday, the younger Bush unveiled a proposed $2.77 trillion budget for the 2007 fiscal year (which begins Oct. 1). By the administration's own estimate, we can expect another $354 billion in deficit spending in fiscal 2007.

                      Just the interest payments on the $8 trillion-plus national debt will total an enormous $247 billion in fiscal 2007 -- an amount equal to 56 percent of the proposed $439.3 billion defense budget.

                      Bush aides accurately note that the current budget deficits are lower, as a percentage of the nation's total economy, than the peak deficits of the Reagan years. But Bush's new five-year budget calculations for fiscal years 2007 through 2011 "are not realistic," according to the Concord Coalition, a nonpartisan budget watchdog organization whose president is Peter G. Peterson, a commerce secretary in the Nixon administration.

                      The new Bush budget "relies on budgetary gimmicks that understate likely expenses and overstate likely revenue," Concord said in a report released Monday ( www.concordcoalition.org).

                      Concord said Bush's deficit projections "assume that costs for military operations in Iraq and Afghanistan will decline substantially in 2007 and that there will be no further costs after 2007. Furthermore, the estimates assume a growing revenue windfall from the alternative minimum tax (AMT) after 2007. Neither is a realistic assumption and neither is consistent with administration policy."

                      "The cost of continuing the war efforts and providing AMT relief would add nearly $500 billion to the deficit over the next five years and more than $100 billion in 2009 alone," Concord said.

                      As savvy critics have noted, the administration now projects budget figures for only five years, rather than 10 years, because the deficit numbers are likely to get worse beyond 2011 if the Bush tax cuts of 2001 and 2003 are permanently extended and costs grow for Social Security and Medicare as droves of baby boomers retire.

                      The result could be "much-higher deficits -- a problem that is hidden from view in the administration's five-year budget window," Concord concluded.

                      It's generally true that tax cuts help stimulate the economy, at least in the short term. But the Bush tax cuts are too large and excessively tilted toward wealthy people who need them the least.

                      Bush has compounded the deficit problem by presiding over a free-spending administration that has ineptly handled the war in Iraq, Katrina relief and the costly new Medicare prescription drug program. Incredibly, Bush has yet to veto a single spending bill passed by the Republican-dominated Congress.

                      Meanwhile, the GOP's worship of tax cuts is being undermined by a disturbing fact: Sizable federal budget deficits are persisting despite a generally improving economy and respectable job growth.

                      But we can always foist off all those trillions of dollars in federal debt off on our children and grandchildren, can't we?
                      Jack Z. Smith is a Star-Telegram editorial writer. jzsmith@star-telegram.com (817) 390-7724

                      Comment

                      • Warham
                        DIAMOND STATUS
                        • Mar 2004
                        • 14589

                        #12
                        I don't have any problem paying off Lyndon Johnson's debt.

                        Comment

                        • Nickdfresh
                          SUPER MODERATOR

                          • Oct 2004
                          • 49203

                          #13
                          Originally posted by Warham
                          I don't have any problem paying off Lyndon Johnson's debt.
                          Hopefully your grandchildren will feel the same way about the idiot you helped elect...

                          Comment

                          • knuckleboner
                            Crazy Ass Mofo
                            • Jan 2004
                            • 2927

                            #14
                            Originally posted by Warham
                            Doesn't matter. When the government is bringing in more money than it would have without the tax cuts, it throws out any arguement about it being irresponsible. Plus the economy is better than it would have been otherwise as well.
                            questionable. kinda hard to say definitively that any 1 particular variable makes the difference in a complex economy.

                            after all, constant deficit spending also has cooling effects on the economy. drives up interest rates, makes it more expensive for the private sector to borrow money. businesses wanting to sell bonds for capital outlays now have to compete with the federal bonds.

                            and hell, if nothing else, moderate inflation alone will drive revenues up from one year to the next. so i'm not wholy convinced that bush's tax cuts spurred the economy. at least not by themselves.



                            therefore, i still stand by the notion that tax cuts without paying attention to the expenditures is irresponsible. which is not to say that spending, regardless of revenues IS responsible. it's not.

                            Comment

                            • Warham
                              DIAMOND STATUS
                              • Mar 2004
                              • 14589

                              #15
                              Originally posted by Nickdfresh
                              Hopefully your grandchildren will feel the same way about the idiot you helped elect...
                              They will.

                              In any event, I'm sure some Democrat will eventually win and he'll raise taxes so that my grandkids won't have to worry about it as much.

                              I'll always be able to say I didn't vote for somebody from Massachusetts. lol

                              Comment

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