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Compromised - Rumors fly that President Bush may be willing to raise taxes
The Wall Street Journal ^ | November 26, 2006 | Lawrence B. Lindsey

Posted on 11/25/2006 11:04:56 PM PST by Zakeet

During the recent off-year elections, the president repeatedly pointed to the booming economy and noted that his tax cuts were responsible. With growth strong and unemployment low despite the ending of the stock-market bubble, terrorist attacks and the war in Iraq, he had every reason to be proud. Moreover, both economic theory and the actual timing of the economic revival support his claims regarding the tax cuts.

That is why it is so odd that rumors swarm around Washington that the president may be willing to raise taxes as part of a "deal" on entitlement reform. In particular, the rumors suggest the president might be willing to get rid of the provision that caps the income level used to compute Social Security taxes and benefits. These rumors aren't without substance; last year the president would not rule out raising the cap when asked.

Doing so would raise the marginal tax rate on the entrepreneurs that Mr. Bush credits for having led the economic recovery by more than 10 percentage points. The new effective rate would be five percentage points above the level when he took office. Moreover, in 2011, the rate would go up a further 4.3 percentage points to an effective 53% marginal rate on entrepreneurial income. The president would thus be not just raising taxes on entrepreneurs to well above the levels that prevailed in the Clinton administration, but to a rate higher than that which prevailed in the Carter administration. Most of the improved incentives for entrepreneurship and work brought about under Reagan would be repealed.

Should the president do this, he doubtless would be thinking that saving Social Security would be worth the price. He would be wrong.

(Excerpt) Read more at opinionjournal.com ...


TOPICS: Business/Economy; Government; News/Current Events
KEYWORDS: chickenlittles; economy; firedbushadvisor; increase; socialsecurity; tax
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To: Zakeet; All

Pure pig slop (pardon my French). John Boehner and Roy Blunt are gonna raise taxes?? Mitch McConnell is gonna raise taxes (doubt even Trent Lott would do THAT)?? George W, the son who repeatedly cut taxes - whose father never cut taxes only raised them yet people want to say the son will do like the father...please!! - is gonna raise taxes?? This forum needs an anti-stupid drug for mass distribution. Stat!












121 posted on 11/26/2006 5:32:03 AM PST by txrangerette ("We are fighting al-Qaeda, NOT Aunt Sadie"...Dick Cheney commenting on the wiretaps!!)
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To: Zakeet

President Bush might have eggs over easy this morning rather than his typical bowl of cereal, says White House insider.


122 posted on 11/26/2006 5:35:40 AM PST by toddlintown (Six bullets and Lennon goes down. Yet not one hit Yoko. Discuss.)
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To: Stallone

So they voted democrat? What sense does that make?

BTW, what's with the enormous font?


123 posted on 11/26/2006 5:37:22 AM PST by toddlintown (Six bullets and Lennon goes down. Yet not one hit Yoko. Discuss.)
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To: Zakeet

Like father, like son. The Bush family and the republican congress and party have abandoned the conservative base hoping that the base will continue to vote for them as the lesser of two evils.
As proven over and over, the Christian conservative base is not like the athiest left wing and foolish socialist base and know that when you are handed your hat, it is time to leave and "move on".
But they will not learn until they destroy themselves.


124 posted on 11/26/2006 5:40:41 AM PST by kindred (Now is the time for a new conservative political party, the Pubs committed liberalism.)
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To: Stallone
Terrorists, both foreign and domestic <--- aka Democratsthanks. . .got it! (As per my tag line, as well. )
125 posted on 11/26/2006 5:45:12 AM PST by cricket (Live Liberal free. . .or suffer their consequences. . .SAVE THE TERRORISTS! JOIN THE DEMOCRATS. . .)
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To: Just Lori
"The only "reform" necessary for entitlements is to GET RID OF THEM! As for taxes on SS, the money that was stolen from a person's paycheck all those years WAS TAXES! So now they're taxing our taxes. It's total insanity!

You go to work, earn, get paid and that money is taxed. Say 30%. You have 70% left.
Then you go buy something and there is a 5% sales tax, not uncommon. So in effect out of the 70% you thought you had clear, you only had 65%.
But let's say you spent everything that year. That 65% didn't buy 65% of stuff, because everything you buy has taxes built in/add on as a cost of doing business. This is done at every level, like a value added tax. The companies that made the stuff, the trucking companies that moved it, the stores that sold it all have to pay and pass on local, state and federal taxes. So, in truth, you bought only 50% of what you earned.

Phew, thats over.
No it is not.
Let's say you bought land, a house, a car, boat or furniture. Every year, the local or state government is going to 'access' taxes upon it. Depending on how long you own it, taxes could be another 10% or more, so you better set aside the money to pay for it, so in effect you are down to say 40% percent. Government in one way or another, and at local to Federal level has taxed you 60%.

Taxes are raised so the government can spend them. However like the slave civilizations of the old Egyptians or Mayans, government has regulations, laws and edicts in which they just command or take our property for supposed useful purposes. It isn't a tax, although taxing, it's just democratic slavery in which your fellow citizens don't want to pay you as it cost too much, so they just order you to do it and you eat the cost or take the loss.

Nice. Have a nice Sunday, go to church and remember God himself only wants 10%.

126 posted on 11/26/2006 6:00:58 AM PST by Leisler
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To: Zakeet
The President does NOT levy taxes, Congress does..
A democrat Congress.. by the way..

Odds of Bush NOT VETO'ing the budget.. is great..
When he "allows" new taxes he will OWN THEM..
Rightfully so.. better for the next two years GRIDLOCK..

127 posted on 11/26/2006 6:13:15 AM PST by hosepipe (CAUTION: This propaganda is laced with hyperbole)
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To: Zakeet

BULLSHIT!

LLS


128 posted on 11/26/2006 6:13:46 AM PST by LibLieSlayer (Preserve America... kill terrorists... destroy dims!)
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To: stockstrader
The operative words in my post were "....EVEN MORE.....

Right . . .and my point is; there is always the danger of the 'slippery slope' when giving power to or 'back to' Democrats. Republican's who stayed home and 'sent the message'; should not be in anyway, disappointed in the politcs they helped 'reap'; and the same message stands for the next election.

There are two sides to the 'ask and you shall receive' dictum. . .giving power to the Democrats, IMHO. ..is not a viable solution to Republiclaln politics or a constructive alternative for the future well-being of America. . .What we have received is Conservative Principles stuck now, between a 'rock and a hard place'. . .

129 posted on 11/26/2006 6:14:23 AM PST by cricket (Live Liberal free. . .or suffer their consequences. . .SAVE THE TERRORISTS! JOIN THE DEMOCRATS. . .)
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To: cricket; nopardons; All
Anyone that has read this entire thread with any thought to what was written can see why we are today where we are.

We have a great and honest President that rose as a leader and led the nation through some of the worst times in history. An economy that was entering freefall followed by the largest attack on American soil, throw in the worst natural disasters in most of our lifetime and fighting wars in two countries.

The economy took a trillion dollar hit in the weeks following 9/11.

Look at where we are today in relation to where we might be with a lessor man in charge?

The economy and the markets are booming. Inflation and unemployment is very low. There are no gas lines or soup lines and taxes WERE cut!

The thanks he gets for his leadership is crybabies that that complained about everything they didn't get and allowed RATS to sweep into congress where THEY will control both THE PURSE STRINGS and JUDGES.

NOW people are worried that elections have consequences and RATS may force taxes to be raised?

If President Bush has failed at anything it was not seeing that the grassroots base voters aren't as intelligent as he gave them credit for.
130 posted on 11/26/2006 7:19:54 AM PST by Beagle8U (Angry voters tend to make poor choices politically.....Unfortunately we all have to live with them.)
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To: Beagle8U
The thanks he gets for his leadership is crybabies that that complained about everything they didn't get and allowed RATS to sweep into congress where THEY will control both THE PURSE STRINGS and JUDGES.

BUMP. . . (and I hope these Repubs and voters et al are reconciling their 'noseless faces')

131 posted on 11/26/2006 7:41:23 AM PST by cricket (Live Liberal free. . .or suffer their consequences. . .SAVE THE TERRORISTS! JOIN THE DEMOCRATS. . .)
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To: jveritas

The idea is being floated, not rumored. The President now has cover, he'll blame the Democratic congress.

Interesting tax to increase, we'll see.


132 posted on 11/26/2006 7:48:01 AM PST by Americalover
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To: blondee123

> I think most posters here realize this is a "reported RUMOR" and not fact!

Exactly. I'm not flying off the handle, and I think (as I hope) that this is completely false. However, it is not unknown for political people to "float" rumors to see what the reaction to a change in policy might be, and the reaction tells the operative how well this change will go with the public. ON THE OFF CHANCE that this is such a trial balloon, I will be truthful and blunt about what my reaction would be.

For those who claim that our president would never float such a balloon, I also never thought he would play patty cake with Pelosi in the White House. I feel it's my duty to make it completely plain that such a principles-betraying move would be a disaster. For everyone.


133 posted on 11/26/2006 7:50:49 AM PST by VictoryGal (Never give up, never surrender!)
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To: blondee123
Yep, we can all get ready to say "President Hillary Clinton" in 2008! Actually, I think a Hillary nomination is the Republican's best hope to keep the WH. She is just too despicable to be electable.
134 posted on 11/26/2006 7:51:52 AM PST by Americalover
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To: Stallone
I cannot believe the opportunity that the GOP and Bush have squandered.


I cannot argue or even disagree with a word you have written here.

So, here's a question, why?

Why have the republicans, who were swept into office in 1994 on the vow to return power and control to the citizens, become what all freedom loving souls despise?

Any thoughts?
135 posted on 11/26/2006 8:00:45 AM PST by WhiteGuy (GO BUCKS 12-0)
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To: WhiteGuy

> Why have the republicans, who were swept into office in 1994 on the vow to return power and control to the citizens, become what all freedom loving souls despise?

Not sure, but a good rule to follow is: when in doubt, follow the money.


136 posted on 11/26/2006 8:13:14 AM PST by VictoryGal (Never give up, never surrender!)
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To: Stallone

You could not be more correct.


137 posted on 11/26/2006 8:16:55 AM PST by bmwcyle (The snake is loose in the garden and Eve just bit the apple.)
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To: VictoryGal

when in doubt, follow the money.

Good point, care to expand on this?


138 posted on 11/26/2006 8:30:00 AM PST by WhiteGuy (GO BUCKS 12-0)
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To: Myrddin

You're absolutely correct.. and, we are in the same boat. I guarantee you, my family will be spending a LOT less in December if the caps are pulled.

Sadly, I am resigned to the fact that this will happen. It's just a matter of when. As we get closer and closer to instability in the system, it will be obvious to everyone that tax hikes and benefit cuts will be required. Who best to to hit first than us "RICH" folk who make $88k by September.

I fear for the long-term future of our country. When the masses can vote themselves pay raises, and no leader will defend the rights of the productive, we are doomed.

But hey! I love my life! :-)


139 posted on 11/26/2006 8:34:08 AM PST by SomeCallMeTim
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To: AVNevis

I think you broke the code!


140 posted on 11/26/2006 8:40:03 AM PST by satan
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