Compromised - Rumors fly that President Bush may be willing to raise taxes

The Wall Street Journal ^ | November 26, 2006 | Lawrence B. Lindsey

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 Most of the improved incentives for entrepreneurship and work brought about under Reagan would be repealed.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

[Stallone]

Some Bushbots are more dumber than others.

[Stallone]

Cut the 'Support the GOP' crap.

The election is over, and the GOP surrendered power like Eurofags.

It's past time to fix the useless GOP, and root out the RINO traitors NOW, before they can throw another election.

[OldFriend]

The demonrats promise more and more to the sheeple. It's their way of buying votes.

Those of us working to pay the bills are the ones suffering for those promises.

Free health care, free college education.......free free free.....remember those middle class tax cuts that turned into a huge tax increase, and the retroactive tax increase on social security.

Despite the lies the sheeple seem to love being lied to, as long as the 'rich' get hurt.

[OldFriend]

You might as well, change the 'guns' to any number of single issue knuckle draggers and you end up with a demonrat congress and senate. Bet you feel sooo much better now, you surely showed the republicans and the President.

[Marysecretary]

OK, I'll do it. Bushbot, Bushbot, Bushbot. There. (smile)

[jackieaxe]

The so-called compassionate conservative has grown the government at 2-3 times inflation (more than Clinton). It would not surprise me to find out he would sign off on a tax increase. It would disappoint me.

[Myrddin]

I certainly do remember the retroactive tax increases. It made for a miserable tax filing as my company had been using the published tax tables and the tax form reflected the retroactive rate. It was a gut punch I didn't much appreciate.

[Gator113]

LMAO