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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 Most of the improved incentives for entrepreneurship and work brought about under Reagan would be repealed.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: toddlintown

They didn't all vote Democrat.

Republicans, abandoned and disillusioned, stayed home, tired of carrying the water for corrupt RINO's at their expense.

The turnout of Republicans was pathetic.

Now how hard was it to advance core agenda items to reward the volunteer grassroots base that earned the victories while the White House country club public relations buffoons did nothing?

How about fighting for lower taxes. Balanced budgets and controlled social spending. A strong military unafraid to win wars decisively, with no political correctness constraint garbage. A strong border to defend the homeland against undocumented potential terrorists. A common sense judiciary based on the Constitution. No corruption.

What the hell does Bush believe in, if NOT the above?

Who gives a damn when the GOP acts like Democrats?


201 posted on 11/26/2006 8:48:04 PM PST by Stallone (Is There A Conservative Leader ANYWHERE In America?)
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To: nopardons; Finalapproach29er
Why would you believe a rumor, written about by a DISGRUNTLED ex employee?

Nopardons, would you criticize President Bush if he signed on to a tax increase?

202 posted on 11/26/2006 8:54:53 PM PST by freedomdefender
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To: WhiteGuy

A simple explanation is that power corrupts.

But I think it goes further than that.

I believe the GOP took the base for granted.

In the isolated country club Bush family tradition, the GOP twits thought the boots on the ground would once again do their dirty work for them. But they were wrong. Dead wrong.

As Rush acknowledged himself, it is tiring carrying the water for the pious and naive pinheads running the White House public relations.

Trench warfare with the Democrats, Enemedia, Eurofags, and terrorists cannot be fought with schoolgirls like Rice, Card, McCallum.

The base was the sole reason for victories in 2000, 2002 and 2004.

But in 2006, the base abandoned the GOP when the GOP abandoned them.


203 posted on 11/26/2006 8:57:31 PM PST by Stallone (Is There A Conservative Leader ANYWHERE In America?)
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To: AmeriBrit

Do yourself a favor, and stop being a condescending asshole?

Or is it organic?

The GOP lost, pal, because the GOP screwed the base.

Don't blame the base, blame the GOP, and their Dear Leader.

As a member of that base, we went beyond the pale to prop up this hapless incompetent naive crew and earned them the trifecta of world power.

They squandered it, and lost power for a generation.

It could not be more straightforward.


204 posted on 11/26/2006 9:02:59 PM PST by Stallone (Is There A Conservative Leader ANYWHERE In America?)
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To: All

It was all well and good to preach 'Vote GOP' during the run-up to the election.

However NOW is the time to make wholesale changes to the country club elite SOB's who dared take us for granted.


205 posted on 11/26/2006 9:15:05 PM PST by Stallone (Is There A Conservative Leader ANYWHERE In America?)
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To: nopardons

It was all well and good to preach 'Vote GOP' during the run-up to the election.

However NOW is the time to make wholesale changes to the country club elite SOB's who dared take us for granted.


206 posted on 11/26/2006 9:18:18 PM PST by Stallone (Is There A Conservative Leader ANYWHERE In America?)
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To: Stallone

Well said with the comments, keep 'em coming.


207 posted on 11/26/2006 9:20:14 PM PST by Extremely Extreme Extremist (Why can't Republicans stand up to Democrats like they do to terrorists?)
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To: Extremely Extreme Extremist

Like your tag!


208 posted on 11/26/2006 9:22:39 PM PST by Stallone (Is There A Conservative Leader ANYWHERE In America?)
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To: Uriah_lost

You're right. We have no proof of this at all. The Bush haters aren't all on DU, are they????


209 posted on 11/26/2006 9:28:49 PM PST by Marysecretary (Thank you, Lord, for FOUR MORE YEARS!!!)
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To: Marysecretary

Furthermore, I have said nothing other than to observe the overwhelming desire of some here to believe the worst, I expect to be called a "Bushbot" in.....3......2......1...


210 posted on 11/26/2006 11:09:26 PM PST by Uriah_lost (We've got enough youth, how about a "fountain of smart")
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To: Leisler; All

"I agree. I think the effective tax rate is near 2/3 of every dollar. That is why financial manipulation is so profitable. If you want to get rich, don't be productive, be manipulative. At one end welfare at the other end Soros type behavior."

You mention overregulaton, which might drive up the estimated tax rate well above 66%. Consider that in places like San Francisco and New York, environmental restrictions signficiantly drive down the supply of buildable land and drive up rents and real estate values...who knows by how much.

When you put it all together, we are all in essence working for the government. We are paying through the nose for its dysfunctions, forced to work longer and harder (to pay these taxes and artificially inflated living costs) at the expense of our familes, leading to more social costs that we all pay (in the form of higher taxes for crime control and welfare, or paying for private school while still having topay taxes for dysfunctional public school districts, etc.)

And in that context, and the context of this entire discussion, I'm reminded of the final chapter of Animal Farm, where the animals can no longer tell the difference between the humans and the pigs feasting on our labor:

http://www.google.com/search?hl=en&q=Animal+Farm+Chapter+10&btnG=Google+Search


211 posted on 11/26/2006 11:41:31 PM PST by quesney
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To: Leisler; All

Animal Farm:

http://www.online-literature.com/orwell/animalfarm/10/


212 posted on 11/26/2006 11:42:38 PM PST by quesney
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To: Stallone

Dude, you have a way with words. Many of us share your disenchantment.


213 posted on 11/26/2006 11:45:04 PM PST by quesney
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To: freedomdefender

If it was a tax increase....a for real, actual, tax increase ( and I'm not talking about "caps" ), of course I would.


214 posted on 11/26/2006 11:56:53 PM PST by nopardons
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To: Stallone

"How about fighting for lower taxes. Balanced budgets and controlled social spending. A strong military unafraid to win wars decisively, with no political correctness constraint garbage. A strong border to defend the homeland against undocumented potential terrorists. A common sense judiciary based on the Constitution. No corruption."

You know, this shouldn't have been too hard for a Republican White House, Senate and House to sell and deliver. Unbelievable.

See this Animal Farm link, Stallone. Perfect metaphor for today's political charade:

http://www.online-literature.com/orwell/animalfarm/10/


215 posted on 11/26/2006 11:56:57 PM PST by quesney
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To: Stallone
WRONG!

What REALLY did the GOP in this year was INDEPENDENTS and conservativish Dems voting for Dems.

216 posted on 11/26/2006 11:59:04 PM PST by nopardons
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To: Stallone

The cut of their nosers did it again! They wanted to "teach" those rotten GOPers a lesson, so they helped to install the likes of Nancy Pelosi, who WILL do far more terrible things than just about ANY GOPer would do. Yeah....that'll really "teach" 'em! /s


217 posted on 11/27/2006 12:01:42 AM PST by nopardons
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To: Stallone
You're a delusional political naif, who isn't going to "make" anyone or anything change.
218 posted on 11/27/2006 12:03:35 AM PST by nopardons
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To: nopardons

Am I?

Well thank you.

I thought I was explaining the reality underlying a devastating loss by the GOP.

According to geniuses such as you, it didn't happen.\

Now what?


219 posted on 11/27/2006 1:01:08 AM PST by Stallone (Is There A Conservative Leader ANYWHERE In America?)
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To: nopardons

Only a fool or a Democrat would blame the victim.

The GOP abused the base and lost their support.

Get it yet?


220 posted on 11/27/2006 1:03:28 AM PST by Stallone (Is There A Conservative Leader ANYWHERE In America?)
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