HOW TO GET A TAX CUT

NCPA Daily Policy Digest ^ | Bruce Bartlett

[bruinbirdman]

It is a mystery why the Bush administration continues to press for full elimination of taxes on dividends when it has been clear for weeks that this is untenable, given the limited amount of revenue available under the congressional budget resolution, says Bruce Bartlett.

By continuing to press for its plan -- no matter how stupidly it is implemented, perhaps with long phase-ins and a sunset provision -- it reduces the chances of enacting good supply-side tax measures such as those proposed by Ways and Means Committee Chairman Bill Thomas (R-Calif.).

The Thomas plan calls for:

o Cutting the tax rate on both capital gains and dividends to 15 percent.

o Increasing first-year depreciation allowances on new equipment by 50 percent.

o Speeding up rate reductions, increasing the child credit and reduction of the marriage penalty.

Bartlett believes that such a plan is as solidly growth-oriented as the president's plan, but with the added virtue of being more stimulative in the short-run.

The White House should get behind the Thomas plan and start figuring out how to get as much of it as possible through the Senate, says Bartlett.

Source: Bruce Bartlett, "How to Get a Tax Break," National Center for Policy Analysis, May 7, 2003.

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[meenie]

I am sure that if we could cut the rate on dividends that aren't paid in our present economic climate, the recession would be over. If cutting taxes is the answer to getting out of recession, why not a tax moratorium? Put on another shift at the printing presses and go on. We have seen any resemblance to money destroyed through the years. The faster it becomes worthless, the quicker we can see true reform. Hello Argentina, goodbye America!

[bruinbirdman]

We are not in a recession.

yitbos

[Libertarianize the GOP]

http://www.freerepublic.com/perl/bump-list

[Moonman62]

Right, we're in a growth recession.

[Cyber Liberty]

Move to the Caymans?

[Moonman62]

No surprise here. President Bush is the master of the ineffective tax cut.

[Ramius]

There is no such thing as an ineffective tax cut. Please revise and resubmit.

[Ramius]

Huh?

[Psalm118]

Move to the Caymans?


Now, THAT'S a croc! ;0D

[Cyber Liberty]

That's a whole LOT of crocs....