Tuesday, April 11, 2006

Tax Cuts on Hold - New York Times

Tax Cuts on Hold - New York Times:
Contrary to the claims of tax-cut supporters, there is no meaningful evidence that the low investor tax rates spur the economy and, in so doing, pay for themselves. That is, as the president's father once put it best, 'voodoo economics.' The investor tax cuts would be paid for by government borrowing. The debt would have to be paid back later, with interest, via tax increases or cuts in government services.

The Senate plans to claim that some of the cost would be paid for by other provisions in the bill that would raise revenue. That's swill. If they can get away with it, senators intend to include measures that raise money in some years and lose money in others, resulting, over all, in a revenue loss. But they've finagled the timing of the measures so that they would bring in revenue just when the money is needed to cover the cost of investor tax cuts. In their world, that counts as paying for the windfall. Don't be fooled.
Yes, please! Don't be fooled again! The tax cuts of BushCo et al are designed to give money to the rich and take services away from the poor. Where's Robin Hood when we need him?

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