Oklahoman Editorial: Demos' stimulus plan comes up short and Rewarding Success

The Daily Oklahoman ^ | 7 and 8 January 2003 | Oklahoma Editorial Staff

[PhiKapMom]

Oklahoman Editorial: Demos' stimulus plan comes up short

2003-01-08

Still licking their wounds from the November elections, House Democrats were determined to offer a stark contrast to President Bush's $674 billion, 10-year economic stimulus plan, unveiled yesterday in Chicago. Well, they succeeded.

The Democratic alternative offered by new Minority Leader Nancy Pelosi could hardly be more different -- and, we think, inadequate.

Where Bush's plan is bold and multi-layered, the Democrats' version is small and temporary.

Bush's plan focuses on tax cuts for taxpayers -- more than $1,000 for 92 million Americans. The Democratic proposal cuts taxes (a little), even if you don't pay taxes! Bush pays special attention to investors and job creators; Democrats imagine dangling a few hundred bucks in front of consumers will get the economy roaring again.

"At a time when our economy needs a fire built under it, the Democrats' plan is like trying to toast a marshmallow with a flashlight," incoming House Majority Whip Roy Blunt, R- Mo., told the Washington Times.

Democrats, who alternately criticize the president for offering a plan that's too large and too small, have themselves thrown up a timid proposal, claiming to have discovered "religion" when it comes to deficit spending.

No one likes increasing the deficit, but in the context of the Sept. 11, 2001, attacks, the recession that began in the Clinton administration and the prospect of war against Iraq, these are unusual times. Bush's proposal meets them boldly; the Democrats' plan meets them with a flyswatter.

The crux of the $136 billion Democratic proposal is a one- time, $300-a-person income tax rebate costing $55 billion. It's not a tax cut. In fact, you don't even have to pay taxes to get the rebate. It also includes $32 billion in business investment incentives, $31 billion in aid to the states and $18 billion to extend unemployment benefits.

But that's it. After 2003, nothing. The Democrats would spend $136 billion and claim it could stimulate a multi-trillion- dollar economy.

Americans now can compare the two approaches.

Bush's call for elimination of the tax on corporate dividends paid to individual stockholders, acceleration of income tax-rate reductions passed in 2001, aid to states and extension of unemployment benefits will mean real benefits to people who are hurting as well as to sectors of the economy that can create sustained growth.

The Bush plan will restore economic confidence with tax cuts that can be counted on in years to come. The Democratic plan offers no tax relief and, again, nothing at all after this year. It's almost as if they don't want the economy to do better so they can attack Bush in the 2004 presidential campaign.

While the Democratic proposal is an alternative, it's certainly no vision.

---------------------- Yesterday's editorial on the same subject which I just read this morning:

Oklahoman Editorial

Rewarding Success

2003-01-07

THE STIMULUS plan President Bush is scheduled to unveil today in Chicago looks like a good mix of short- and long-term measures that should help perk up the economy. Now, can he get it through Congress? No one can accuse Bush of responding meekly to the still- weak economy. News reports indicate the $600 billion, 10-year plan he will announce will cut taxes, provide immediate relief to middle-income parents, extend unemployment benefits for thousands of workers and provide more money for state governments.

The plan's longer-range features should help the economy to grow jobs, which is the key to sustained recovery.

We especially like the centerpiece of the proposal: tax cuts for taxpayers.

Bush is expected to propose elimination of the federal income tax that shareholders pay on corporate dividends, which administration officials say will greatly increase the value of corporate profits and should increase stock market valuations.

The president reportedly will ask Congress to move up the effective date of individual tax- rate cuts passed in 2001 that currently won't take effect until after this year. Since many top rate payers are small-business owners, cutting their taxes will spur investment and job creation.

Bush is expected to seek acceleration of the child tax credit passed in 2001, expanding it to $1,000 from the current $600, giving cash rebates to middle- income parents.

All three tax-cutting provisions will help stimulate the economy by putting more money in the hands of job- creators and investors. <> Even before the plan is revealed, Democrats have started criticizing it as being tilted toward the wealthy and insufficient to stimulate the economy in the short term.

It's mostly a broken record. The class-warfare gambit was a loser with voters in November. Bush won the argument then and is proceeding, as one advisor said over the weekend, like a winner should: boldly.

The president "believes people should not be denied tax relief because they are successful," said White House spokesman Ari Fleischer. "This is a classic difference between the two parties, and we welcome it." Said Sen. Don Nickles, R-Ponca City: "The wealthy are paying most of the taxes. You ought to have tax cuts for taxpayers."

We think cutting taxes was the right thing to do in 2001. Economists now know the early benefits of the tax cut softened the Clinton-Gore recession. It's the right policy to strengthen the economy now.

Bush's challenge will be getting the plan through the Senate, which Republicans narrowly control. The Senate is home to a large part of the Democratic herd that's running for president in 2004, so it won't be easy.

But as we say, voters by and large registered their feelings on the subject two months ago. They strongly signaled their trust in President Bush on the economy. So should Congress.

[PhiKapMom]

Bold and Underline is mine for emphasis.

Looks like "Tax Cuts for Taxpayers" is catching on! Maybe a Freeper can come up with a graphic for our use when writing about tax cuts. Large Hint BTW!

[PhiKapMom]

Thought you all would enjoy these editorials!

[axel f]

What I would give to have an editorial staff like this one on my newspaper...

[gov_bean_ counter]

Did you hear Cavuto's final comments from yesterday's show? It was along these lines. A transcript should be posted and referenced regularly.

[PhiKapMom]

Right after we were transferred to this area, I picked up this paper and when I read the Editorial Page I figured it was a once a week happening. It turned out to be an everyday deal which was a total shock. Didn't know a paper like this existed in America.

The Gaylord Family (owners of the paper) have also given millions of dollars for the new facility for the OU Journalism college so that one Journalism college in America will teach jounalism and ethics instead of being liberal biased!

[PhiKapMom]

I didn't watch it last night! Thanks for the info!

[deport]

Senator Nickles was speaking on the Senate floor yesterday about the tax cut and giving info on numbers etc. I only caught part of it but he was refuting some of the misinformation being circulated....

[RAT Patrol]

What I would give to have an editorial staff like this one on my newspaper...

Ditto!!!!!!!!!!!!!!!!!!!!!

[D. Miles]

Dems need to go to the back of the room, sit down, shutup, and let this country get on with getting out of this quagmire!

[Charlie OK]

"It's almost as if they don't want the economy to do better so they can attack Bush in the 2004 presidential campaign."

Didn't Ellen Ratner say exactly that? They aren't even trying to hide it!

I can always tell who the liberals are around here. They refer to this paper as "The Daily Disappointment". How very original.

One of my friends is a journalism major. He can't seem to figure out if he is pissed that it is Gaylord that is giving them money, or glad that the j-school is finally going to be upgraded substantially.

[PhiKapMom]

Think everyone is going to love Sen Nickles as head of the Budget Committee -- gives him a real chance to get out front and trash the RATs with their phony numbers and statements!

Going to be an interesting year!

[Paulus Invictus]

A tax rebate from our paid taxes for people that don't pay taxes?? What lunacy! But it's the RATS that propose it and they are all lunatics!

[PhiKapMom]

My daughter decided to go to Rose State her Freshman year to get her math, etc., out of the way and then transfer to OU in the Fall. She is a Journalism major and looking forward to the new facilities. Her Journalism professor at Rose State is definitely on the conservative side if her last semester was any indication -- she would be a real asset at the OU Journalism College.

Love your tag line!

[PhiKapMom]

Here in OK, someone from the Tulsa area is suing the state for giving tax money as earned income credit to people that pay no taxes. Seems it is against the Constitution! If you don't pay taxes, you cannot get money back from the Tax Commission according to the lawsuit.

That lawsuit should be interesting to follow!

[Charlie OK]

I am in Tulsa, and I haven't even heard about that! Man, why didn't I think of that?!

[PhiKapMom]

It was a small little article in either the Norman Transcript or the Daily Oklahoman yesterday which I read last night!

Sounded perfectly logical as everytime I fill out my OK tax I get disgusted especially when I do my kids taxes who are in college! They always either have to pay additional taxes it seems or get only a couple of dollars back.

[MeekOneGOP]

The Democratic alternative offered by new Minority Leader Nancy Pelosi could hardly be more different -- and, we think, inadequate.

Where Bush's plan is bold and multi-layered, the Democrats' version is small and temporary.

Bush's plan focuses on tax cuts for taxpayers -- more than $1,000 for 92 million Americans. The Democratic proposal cuts taxes (a little), even if you don't pay taxes! Bush pays special attention to investors and job creators; Democrats imagine dangling a few hundred bucks in front of consumers will get the economy roaring again.

"At a time when our economy needs a fire built under it, the Democrats' plan is like trying to toast a marshmallow with a flashlight," incoming House Majority Whip Roy Blunt, R- Mo., told the Washington Times.

And the beat goes on ! This little tidbit bears repeating:

The Democratic proposal cuts taxes (a little), even if you don't pay taxes!

pelosi the Redistributionist/Socialist...

She and hillary make a good team, huh?

Separated at birth?...

[I_be_tc]

Do all liberal women have that shocked bug-eye look. (Okay, I see it in donahue also, but he is a pretty feminine kind of guy.) They all look so radical, hillary, nancy, even mara liasson on FOX News. They are scary!

TC

[axel f]

MY EYES MY EYES!!!!!!!!!!

[axel f]

Keep us informed on that lawsuit, if you wouldn't mind.