June 10, 2007

Republican Policies Equal Prosperity

Just a little reminder from George Will.

In the 102 quarters since Ronald Reagan's tax cuts went into effect more than 25 years ago, there have been 96 quarters of growth. Since the Bush tax cuts and the current expansion began, the economy's growth has averaged 3 percent per quarter, and more than 8 million jobs have been created. The deficit as a percentage of gross domestic product is below the post-World War II average.

So, why would any sensible American want to vote for a Democrat?

And remember -- this is what happens when the Bush tax cuts expire.

Twenty-three months after the next president is inaugurated, the Bush tax cuts expire. The winner of the 2008 election and her or his congressional allies will determine what is done about the fact that, unless action is taken, in 2011 the economy will be walloped:

The five income tax brackets (10, 25, 28, 33 and 35 percent) will be increased 50, 12, 10.7, 9.1 and 13.1 percent, respectively, to 15, 28, 31, 36 and 39.6 percent. The child tax credit reverts to $500 from $1,000. The estate tax rate, which falls to zero in 2009, will snap back to a 60 percent maximum, and exemptions that have increased will decrease. The capital gains rate will rise, and the marriage penalty will be revived, as will the double taxation of dividends.

Furthermore, the alternative minimum tax was enacted by Democratic moralists in 1969 because 21 millionaires had legally avoided paying any income tax. The AMT, which allows almost no deductions, had one rate (24 percent) until 1993, when Democrats replaced it with two (26 percent and 28 percent). It has never been indexed for inflation and in the current tax year will hit almost one in five households -- 23 million of them.

Interesting, isn't it, that the group seeing the largest tax increase when the "tax cuts for the rich" expire during the next presidential term will be those making the least? And I wonder how many of those low income Americans removed from the tax rolls completely by the Bush "tax cuts for the rich" will find themselves once again required to pay income taxes with the return to Clinton-era tax policies?

Still, the Democrats want to insist that putting them in power means that "Happy Days Are here Again" -- but I would contend that will be the case only if you believe that the dark days of the Great Depression was a time of joy for Americans

Posted by: Greg at 07:56 AM | No Comments | Add Comment
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