Save the Bush Tax Cuts
Do you want to know what a win-win is in politics? It’s when good policy and good politics meet up. The Bush tax rate cuts, scheduled to lapse in January, are a prime example of an excellent meet-up for GOP candidates. Do Republicans have the smarts to campaign for the extension of the Bush tax rates? Or do the frequently tone-deaf and lily-livered Republicans not get how powerful it is to stump for an extension, especially with a teetering economy? Let’s help stiffen GOP spines with reasons to push tax rate cut extensions.
But let’s first dispel a fear. An outgrowth of that fear is “W” aversion. And, no, that’s not just some Sesame Street-induced aversion to the letter “W,” but an aversion to the man the letter represents. Associating George W. Bush’s name with anything — from bonbons to tax cuts — makes gullible Republicans believe it is a certain kiss-of-death with independent voters and persuadable Democrats (a rare breed these days, for sure).
Because the Bush brand is a bit tarnished, Republicans are particularly afraid to invoke the Bush name since Democrats will use it to batter them silly — even over the always popular issue of tax cuts.
Yet, reality, like time, marches on. The conventional wisdom — as is often the case — lags behind changing perceptions. In light of Barack Obama’s abysmal performance, Mr. Bush is experiencing something of a revival in voters’ minds. A poll back in April indicates that Mr. Bush might just give America’s first adolescent president a run for his money in an election. Chances are, given the ensuing Gulf fiasco, among other fiascoes, a Bush-Obama horse race today might even tilt decidedly in W’s favor.
Whatever voters think of Mr. Bush, they think much more of their bank accounts and checkbook balances. Taxpayers are never, ever against keeping more of their hard-earned cash. And with the economy experiencing a tepid recovery, with job reports showing no real growth in private sector employment, and with Greece as the canary in the coal mine twittering about an impending debt and deficit crisis here at home, voters aren’t going to pooh-pooh more money in their pockets.
But skittish Republicans fear two other assaults from Democrats related to making a push for renewing the Bush tax cuts. First, Democratic demagogues will blast Republicans for wanting to keep tax rates that favor the rich. But as any semi-savvy American has learned, the Democrats’ definition of who’s rich has become pretty elastic. Vampirish Democrats, always on the prowl for more dough, claim that income earners who benefit from the lower tax rates are Thurston Howell III and Lovey rich. No small point: those “high” income earners include scads of small businessmen — and women.
Here, again, voters’ understandings are more sophisticated than condescending and exploitive Democrats allow, especially when voters get clear and direct explanations of who the Democrats think are rich. For instance, the guy who owns the small widgets shop that employs fifteen people — including your cousin Edith — who gives generously to the church, and who helps sponsor the local little league, isn’t rich; he’s a friend, neighbor, and employer. He’s one of the standup guys and gals who keep Elmsville from becoming Alms-ville. Or as Democrats would prefer, Government-Handout-ville.
If you wait for establishment Repubs to stop living in fear of the obsolete MSM-power paradigm, you are going to be waiting a long time.
It is just simply important to know the candidates yourself, and get out the message yourself. Visit a neighbor… with your ballot info in hand.
“Do Republicans have the smarts to campaign for the extension of the Bush tax rates?”
The real question is do they have the smarts to campaign for a flat tax? Or at worst a per capita deduction only and thereafter a flat tax? One that is phased in over 8 years? One that treats medical benefits as income–as they are. One that gets rid of the mortgage interest deduction over time, as it should.
If my taxes went up under such a single postcard tax, I’d still be happier.
I know an accountant that always has Democrat party signs in his yard–the rent seeking disgusts me. Let him and the IRS find honest work.
Other very good questions:
1) Are they going to take an axe to government, not just slowing the increase, but actually spending less?
2) Are they going to phase in fully private accounts for Social Security?
3) Will they eliminate the DoEd as such, and if the feds stay involved in education, will they mandate vouchers on pay for school performance terms?
4) Will they end the Roosevelt era agricutlural subsidies?
5) Will they pass an amendment to prohibit consecutive terms–no more incumbents, ever.
6) Will they enforce the 2nd amendment–and the 1st?
7) Will they end the idiotic war on drugs? Nannyism at its worst.
The Republicans of 9 years ago really were a pack of wimps. Who ever heard of a tax-cut that expires? They kept the AMT and the ridiculous complexity of our income tax system. They also kept corporate taxes way too high compared to our international competition.
I had much higher hopes after the election of 2000 and I let the party know they would not be receiving any more donations from me until they fixed these things. I agree with Tom Perkins. A flat-tax and massive spending cuts should be written into the party platform. A little love for the 9th and 10th Amendments would be nice too.
If those tax-hikes really do happen, 2011 is going to be a truly terrible year. The economy is going tank like nothing we have seen in 80 years and revenue is going fall, not rise. We are on the wrong side of the Laffer Curve and things are going to get ugly if we don’t get some adult leadership soon.
The reason the tax cuts expire is because the Republicans had to use the reconcilliation process to get around Democrat fillibusters. As a result, the tax cuts automatically expire. The only other alternative was to have no tax cuts at all.
My fear is that the Republicans will succumb to Democrat demogougery and agree to let the tax cuts for the “rich” expire, but leave in place the cuts for everyone else.
As a result, tax revenues will fall and there will be no boost to the economy.
Then the Democrats will turn and around and scream, with the help of a compliant media, “See we told you tax cuts never work.” And the myrmidon’s will believe them and back the huge increases in taxes that the Democrats wanted all along.
“It’s a rare thing when good policy and good politics come together to benefit the American people.”
Haven’t seen any of this in over two years. And I don’t expect to see it for at least that much more.
There is a difference between Conservatives and Republicans, but what is needed is a coordinated effort of goals and approaches. Campaign for Private Sector Growth and the things to provide fertile ground for that growth. Highlight how “more Government” is actually counter to “More Effective” government. Some big considerations to include:
1) Capital Gains Taxes: A clear reasoning needs to be presented repeatedly to the public in a way the typical voter understands. “If you want a job or a better job, your employer (or you) need to invest. If the return of that investment is too low, it will not occur. Capitol Gains Taxes kill the return on investment”.
2) Lending to the big banks at 0% so they can invest at 3% into T-Bills without risk is a no brainer profit maker. Why lend to business in that case. Besides, right now the only borrowers that qualify for loans don’t really need them.
3) Drowning companies in regulations kills business growth. 2,000 page unread bills scare the death out of investors. It is now so bad that the government can’t even manage its own regulations to be even partially effective on the Gulf cleanup.
4) Schemes such as “Cap and Tax” are scaring the heck out of any energy intensive business. Why stay here with that looming when you can invest in Hong Kong more safely.
Something is really wrong when Canada seems to have economic freedom and low taxes compared to us.
One problem I see with Republicans/Conservatives campaigning on keeping the tax cuts is a belief in voter sophistication about taxes and economics, especially when the words wealthy and rich get thrown around. Too many voters, espeically the younger ones (in WA state anyway) seem to think that it’s good sense to further tax anyone who makes over some randomly specified ‘this is rich’ amount. We’re going to get our first income tax here this year, thanks to Bill Gates Sr. and his ‘tax people who earn over 200K’ initiative (this state is smurf blue, so it will likely pass). I don’t make anywhere near that much (40ish with OT), but once the door is opened, it won’t be long before they start rolling the income tax downhill.
I’ll believe the electorate is sophisticated the day that they understand/admit that raising a minimum wage increases unemployment, and that taxing money out of the private sector reduces investment and economic growth- maybe there’s a pressing need for it (infrastructure, national defense, etc) but at least own up to the effects first.
It’s doubtful that any of the people posting on this board benefited from the Bush tax cuts. What is so ironic (and sad) is that they carry water and bend over for the people who do. Go figure. Chalk that kind of behavior up to the ” Someday I want to grow up and be just lie you daddy,” syndrome.
From the time the tax cuts became fully effective in 2005, the economy and jobs boomed. Revenues to the government reached the highest levels in history, as well. The budget gap was narrowing because of increased receipts. Apr, 2008 saw the most money in gov’t coffers ever. Then the Dems spent it to a record $455B deficit.
We All benefited from the tax cuts. All of us. Problem with Leftists is they do not understand indirect effects… or know, but it gets in the way of their agenda. No power to be had in lower taxes. The more tax regs they have, the more power to grant exceptions they have. That’s all the Progressive Income Tax was for, to give the gov’t more power. Divide and conquer: Rich versus poor.
Pretorian,
That is a joke, right? We have all benefited from them, if a person had a job, it can be credited to those tax cuts, if you doubt, wait until this time next year, 6 months into the cancellation of those tax cuts. Unemployment will be growing by leaps and bounds with no end in site.
Of course, the statistics may not show that, a little sleuth of hand by the left could present the idea that all is getting better, though I don’t think many will be buying it.
Forget that, the 10% tax bracket alone saved married couples $600/year. Raising the child tax credit: $500/(child*year). Eliminating marriage penalty: potentially thousands per year, depending on tax bracket and whether or not you itemize.
No more tax cut for the rich dudes. Make them pay.