Bush Unveils $674 Billion Economic Plan

Reuters via Yahoo ^ | 1/7/03

[concerned about politics]

Technically speaking, within the current tax year Pelosi is correct.

It depends on the meaning of the word "is."

[Uncle Jaque]

RE: "pretty incredible. It's nice having a president with brass pelotas."

Yeah; do you suppose he got them in his stocking this Christmas?

I wish he'd had them back when he folded to the 'Rats and NEA and left Vouchers conspicuously out of the "No Child Left Behind" so-called educational reform, or when he went belly-up and signed off on McCain's pet "abolish the 1st Amemdment/ Liberal Incumbent Protection" CFR Bill.

Did you hear the RATS come squealing out from under their rocks with fang and claws bared immediately attacking his proposals? They sounded pretty pathetic to me.

I hope "W" has his new Christmas gifts tied on real tight; I reckon he's gonna need 'em soon.

[Wphile]

...that income has been deferred and any earnings on it accrue tax free until withdrawn...

Well, that's true but since the tax is paid when it is withdrawn one's rate of return is considerably less. Having those dividends be tax free when they are withdrawn increases the attractiveness of 401(k)s and IRAs. That means people will be better able to provide for their retirement, which was one of the objectives stated in W's speech.

Also, if anyone has to withdraw early, the earnings are taxed and there is a heafty penalty to boot!

[rwfromkansas]

It won't happen if we don't demand it happen....it is such a radical thing he needs our support so when the attacks come, he can stand tall and say "I have the support and it is time for a change."

I remember reading that it is something being considered for the 2004 election push, and it is not just the former Treasury Sec. that wants it. So, I have hope. But, we need to fight for it.....call the WH etc.

[GretchenEE]

Does anybody know if there is a blood line between the Reagan's and the Bush's?

Don't know about Ronnie and W, but 43 is a distant relative of Winston Churchill (also of the late Princess Diana).

[concerned about politics]

They'll see who's right here, and it sure ain't the RATS!

Yeh. NOW the democrats seem to think THEIR $300 muffler is a good thing. LOL

[.30Carbine]

Of note from the article:

"Democrats want to give a $300 tax credit to all taxpayers,
even those who don't make enough to owe anything."

What a joke. No wonder they call it a tax "credit" rather than a tax break!

[ohioWfan]

Ah yes......all that being agreeable in the last two years has paid dividends.......pun intended.

He now has the trust of the American people and a Republican Congress, and can afford to go for the jugular on some things, while being patient and incremental on others.

Does anyone still think this man is stupid??

[rwfromkansas]

What is that one?

[concerned about politics]

"Democrats want to give a $300 tax credit to all taxpayers,

ROTF. Dasholes "muffler!" LOL.

[GretchenEE]

Congress should be embarrassed by his use of common sense to demand enactment of their tax bills.

When something as plain and simple as Common Sense can righteously slap Congress upside the head, it certainly points out in stark relief how far we have fallen from what our forefathers struggled so valiantly to obtain for us!

[muawiyah]

I didn't see anywhere in the President's plan that he intends for withdrawals from 401(k) plans to be allowed tax free. Such an action would be comparable to allowing all other dividend payments to be made tax free.

Remember, with a 401(k) plan, you put in money, not stock, and you withdraw money, not stock.

With 60% of stock being held by institutions (mostly for 401(k) and other retirement plans, or for Liberal nonprofit foundations), we have to assume for the sake of argument that we have 60% of stock dividends already subject to no taxation anyway.

What is happening is the 40% of dividends not already taxed will no longer be subject to taxes.

It seems to me that the value of a 401(k) as an investment opportunity has just been substantially depreciated unless you are also getting a substantial sum in employer matching contributions.

Equity would demand that we be able to withdraw our 401(k) funds tax free to the extent such funds derive from our own direct investments and not from employer matching contributions.

[ohioWfan]

Part of the reason he has the leverage to get what he wants NOW, is because he compromised BEFORE.

Wait and see what happens with those things he gave up to get the BIG fish, now that he has a Congress that will support him.

[Psycho_Bunny]

Say what? The $400 tax break is a FEDERAL tax not a state tax. The states get very little money from the Federal government - about 9% of a school's budget comes from the Feds.

It wouldn't matter to me if the Feds only paid .5%....the underline concept is still valid:  families with children use far more public resources than single, childless people.  Why then, do the families get the tax break? 

I should get the tax break: I don't have a kid in school.

[Dog Gone]

Technically speaking, within the current tax year Pelosi is correct

Only if you're willing to change the definition of words.

Besides, her lie is more sinister than that. The implication is that making dividends tax-free won't have any impact on people with those retirement accounts.

It sure the heck will. There are taxable and non-taxable withdrawals from those accounts, and this would shift dividend payments into the non-taxable category. The impact of that for many retirees will be huge.

[Wphile]

What is that one?

What?

[ohioWfan]

I think that cute little 'muffler' thing may have been the beginning of the end for our little friend, tommy! :o)

[krodriguesdc]

I could really make do with an extra $1100 or so. $600 to invest and $500 to spend!

I doubt that couples who make $39,000/yr are into investing...

actually $20/week extra equals an extra pizza/week.

[Wphile]

Okay, I see your beef but your beef should be where your education tax dollars go to and where they come from. That's probably your property taxes and your state income tax, if you state has an income tax. That's where you should direct your rage. And, I agree with you as well. The real stinker is those of us who pay private school tuition and have to belly up the taxes for the public school which we choose not to use because it is incompetent! Aaaargghh!

[Grampa Dave]

Immediately after President Bush's economical proposal speech, an ad site on Yahoo was swamped by the Rats in Congress. Go to this link to see what all the Rats need after President Bush's speech: (Yahoo Ad Link for Rats in Congress)