German official flays US policy on tax breaks

The Peninsula ^ | November 14, 2004

[gcruse]

That's true. Agriwelfare, funding for NEA, CPB, and NEH, while cutting taxes don't make a whole lot of sense, though. You can cut chunks out of those albatrosses while increasing military spending and lessen the deficits being racked up.

Bush was into buying votes. As with the steel tariffs, he learned the hard way that the left will take your money with no intention of changing its vote. In 2002, he wooed the wrong damsel. That was corrected in 2004.

[finnigan2]

The German officials parroting of the Kerry campaign's Party platform planks are pure theater designed to divert attention to the German governments real concern, which comes in the last sentence of the whine:
"Europeans suspect that the US government has deliberately allowed the dollar to slide in order to finance its deficits and sustain exports."

- I would add that I believe that Bush is deliberately allowing the dollar to slide against the Euro all right, in order to reduce the trade deficit but, just as importantly, to cut French and German exports to the US and to boost US shipments into the EU. This will of course have a negative effect on German company profits and further slow their economic recovery, which is anemic at best.
You see Hans, when you knee the giant in the groin time and again when he asks for your understanding and support, sooner or later there will be consequences.

[Hank Rearden]

When they criticize our "obscene deficits" they are not suggesting we limit the growth of government spending. They think we should just jack up the tax rates, especially on the rich.

Yes, I know that. But nonetheless, the deficits under Bush are obscene and inexcusable, except by those who willingly blind themselves to what's going on.

And with Bush's "free" pill vote-buying scam and other liberal spending initiatives he's approved, the situation is going to get much worse. "Tax cut" is the wrong label to apply to deferred taxation - that's all they are if you're unwilling to slash Big Stupid Government spending.

[knews_hound]

Nice thread.

Cheers,

knews hound

[spinestein]

I agree. Probably the most important policy change that came from the "Contract with America" (remember way back to 94?) was the spending caps imposed on congress. It is that more than anything else that ended the budget deficits and removed an obstacle to economic growth. Sadly, now that the spending caps have expired all the Democrats and most of the Republicans (including Bush) think that 8 percent growth rates in government spending are OK.

Bush has made noises in the past week about reducing this spending and that's encouraging, but I'll believe it when I see it. And you can bet that limiting the rate of government growth is only going to be done over the Democrats dead bodies, if you believe their rhetoric.

[Moonman62]

See my #51.

[datura]

Agriwelfare. From a farmer to a consumer: ESAD D!ckhead.

[gcruse]

If I give billions to welfare queens, that makes them consumers, too. What's your point?

[KwasiOwusu]

"He's got a point about our obscene deficits?"

No he doesn't.
Germany's deficit as a percentage of GDP is much higher than that of the United States.
In fact Germany and France have persistently spent over and above limits that the EU has set. Limits that Germany itself campaigned forcefully to have the EU implement.
This guy should be looking to fix the log in his eye, before trying to fix the mole in someone else's eye.

[Grzegorz 246]

Not exactly. Cheap dollar is indeed improving American export, but it isn't blocking import, it just make it more expensive and this isn't good for US economy considering a huge trade deficit.

[Potomac]

Nonetheless you cannot argue that the impact on European exportation is considerable, and the slower importation for America is simply that.

[rrrod]

"Well, the real thing to say is, why is German unemployment at 9% and ours ir 5.4%?"...sorry to have to disagree with you, but you don't take into consider germans on the dole, make work programs and so forth...bet the numbers are closer to 20%.

Watch the Germans and other socialist panic when we change our entire tax code!..Euro co.s will pour in here....as per a recent biz survey.

[Grzegorz 246]

Cheap currency may give some illusory benefits in short period, but high budget deficit is extreme dangerous in long period. That's why budget deficit MUST be under 3% of GDP and shouldn't be higher than 1.5-2%.

[Potomac]

Let cheap dollar will kill European economy, then we'll balance currency:)

[VeniVidiVici]

West Germany screwed-up royally trying to absorb East Germany into their economic structure.

They still don't have a clue on how to do it so without upsetting the unions or making unemployment go higher.