Bakersfield Republican has winning tax plan Bush, Senate outfoxed with compromise

The San Francisco Chronicle ^ | Thursday, May 22, 2003 | Carolyn Lochhead, Chronicle Washington Bureau

[Ernest_at_the_Beach]

Washington -- A wily Bakersfield Republican who strikes fear among friend and foe on Capitol Hill has out-maneuvered the White House and Senate Republicans on President Bush's premier domestic policy: the elimination of the tax on corporate dividends.

It will be Bill Thomas' reduction of the tax on dividends and capital gains -- not the elimination of the dividend tax that Bush introduced with tremendous fanfare in January and has lobbied for ever since -- that will be in a $350 billion, 10-year tax cut package agreed to Wednesday that Bush will tout as his signature domestic achievement this year.

[Frohickey]

stupid, stupid, STUPID!

Instead of a elimination of the capital gains and dividend taxes (at least for 3 years), we have yet another tiered tax rate!

There is nothing fair about a tiered tax rate that is based on income earned by the person!!!

[Ernest_at_the_Beach]

But the politicians like it!

[Pukin Dog]

no, no, NO!

You should be saying stupid like a FOX.

Add up the amount of the Tax Cut, with the amount of the cut in dividends and Capital Gains, and guess what you come up with?

726 Billion.

Almost exactly what Bush wanted. Just as everyone was upset with the first tax cut, this one completed it by making ALL the cuts retroactive to January THIS YEAR, instead of being phased in.

Next year, Bush will call for another tax cut, which will fix whatever is wrong with this one. The media will say Bush lost, because they have to say that to sleep at night.

In reality, Bush won big time. Do the math, my friend.

[JmyBryan]

You shouldn't complain about a reduction in the cap gains rate. Been needed for a long time. I'm very happy (though not quite convinced) that this will actually pass.

[kellynla]

Elimination of the IRS and replace the income tax with a national sales tax on everything but food.

[Ernest_at_the_Beach]

Too simple, doesn't help the professional politicians!

[kellynla]

I just received this email today...TO: MONTEREY-SALINAS-SAN FRANCISCO BAY AREA RESIDENTS:

We have received a notice from Recall proponent Shawn Steel.

For the past few days he has been working hard to organize a contingent
of protestors to be present at the fundraiser being conducted by Governor
Gray Davis for special interest groups at the Tehama Golf Club in Carmel.

The event is tomorrow – Friday – with the first tee time at 7:30 A.M. We
profusely apologize for the short notice.

Starting ticket price for Davis’ donors is $5,000 with prices ranging up
to $25,000 to golf with the Governor himself.

We hope you can show up to greet the Governor and his contributors and
make sure we hold Gray’s feet to the fire for his return to his
obsessive, compulsive fundraising. It was, after all, his focus on
fundraising instead of leadership that got us into the repeated crises
we are enduring in this state today.

NEED: To Get A Huge Crowd – Bring your t-shirts, Recall signs,
cameras, etc…

WHAT: Rally to show Gray Davis’ Supporters they will be held accountable
(We will be video taping them as they enter the Golf Course.)

WHERE: At the entrance of the Tehama Golf Club in Carmel (Highway 68,
aka Monterey-Salinas Highway, and Olmsted Rd.) right next to the
airport – you will see our banners and signs. Please join us!!

Click on the link below for a map:

http://www.recallgraydavis.com/Maps/DavisGolf.htm

WHEN: Friday, May 23, 2003 – meet at 11:00 A.M.

Questions? Email David@RecallGrayDavis.com
.

[ilgipper]

So, what are the rates going to be now? I forget the long-term details of the 2001 cut? What are the rates changing to retroactive to Jan.1?

[Ernest_at_the_Beach]

BUSH WILL SIGN $350 BILLION TAX CUT BILL

[Ernest_at_the_Beach]

Bush will sign $350 billion tax cut

By Nicholas M. Horrock
UPI Chief White House Correspondent
From the Washington Politics & Policy Desk
Published 5/22/2003 1:18 PM
View printer-friendly version

WASHINGTON, May 22 (UPI) -- President George W. Bush said Thursday he will sign a $350 billion tax cut compromise worked out by Congress, after once calling the figure an "itty bitty" measure, apparently choosing to accept a more modest cut to avoid further delay.

The bill is expected to be on Bush's desk by Monday -- the Memorial Day holiday -- and refund checks for some taxpayers could be sent out by late summer, according to Senate aides.

"This bill I'm going to sign is good for American workers, it is good for American families, it is good for American investors and its good for American entrepreneurs and small business owners," Bush said on Capitol Hill after a meeting with Congressional leaders.

The tax cut, worked out late Wednesday by House and Senate conferees is less than half the $750 billion Bush originally sought. The House passed a $550 billion tax cut and the Senate passed a $350 billion reduction, but Senate Republican moderates threatened to hold the line at $350 billion and the delay would have meant that Congress would recess before completion.

The bill would accelerate tax cuts called for in the $1.3 trillion 2001 measure, increase child credits from $600 to $1,000, eliminate the marriage penalty and expand the 10 percent tax bracket. All these provisions would expire in 2005.

According to Senate Finance Committee aides, the paycheck withholding levels could be adjusted by July and taxpayers would see an increase in their take-home pay. About 26 million taxpayers could see a refund on child credits of $400 by the end of summer.

The most contentious measure was Bush's plan to permanently discontinue taxing corporate dividends. The compromise bill will reduce taxes on dividends and capital gains 15 percent, 5 percent on the lowest tow tax brackets which expires in 2009.

In 2009, the taxes on corporate dividends would be permanently ended for the lowest two tax brackets.

Bush was criticized by Democrats and some Republicans that this provision was favorable only to the rich.

The bill would give $20 billion to aid states many of which are strapped for resources as tax revenues faltered in the bad economy.

The bill increases the small business deduction limit for equipment purchases to $100,000 to encourage entrepreneurs and raise the amount firms can depreciate equipment from 30 percent to 50 percent of its value.

The Democrats opposed the tax cut on the grounds that coupled with the war and Bush's first tax cut it would accelerate the growth of the country's $6 trillion deficit.

[Pukin Dog]

2001 tax rate reductions were just the first step in a series of income tax rate reductions to be phased in by 2006; by that year the 39.6 percent tax rate will have dropped to 35 percent, the 36 percent rate to 33 percent, the 31 percent rate to 28 percent, and the 28 percent rate to 25 percent.

Under the new tax cut plan, those new tax rates go into effect right now and retroactive to Jan.1. So you see, we are actually getting a lot more than what the media is telling you. We get all the first tax cut NOW, instead of over 10 years, and we get another 350M in cuts from the Marriage penalty and Capital Gains cuts, and THEN we get a dividend cut on top of that.

Bush's tax cuts are now on a scale similar to what Reagan did, and Bush still has 5 and 1/2 years to do even more. Be happy, grasshopper!

[CyberAnt]

This is such great news - and the dems are furious about it.

[ilgipper]

For me any tax cut is a welcome tax cut. Certainly a clear message to those that can't see the difference between the two parties.

[hunter112]

the dems are furious about it

That's the important thing here, those running for the Rat nomination will all have to jump on the tax cut, and make statements about how they oppose it, to get the nomination. Those sound bites can be played back during the fall campaign, and Bush can get the coattails he needs to REALLY reform the tax system.

The liberal media is fuming, too. They would have loved to paint a picture of a defeated Bush (he's still looking too good from our victory in Iraq), now all they can do is point out that once upon a time, Bush called $350 billion "itty bitty". Well, "tough bitty!" Dan Rather!

[Pukin Dog]

There is one other point that makes this tax cut all the more brilliant.

Anything that the Democrats would propose to change it is tantamount to a Tax Increase.

Bush is going to cut taxes every year he is in office. This is the only way to slow down the growth of government and not suffer politically from the special interest groups.

As long as we stay clear of another Bush Senior, or Bob Dole, Republicans can have the White House for the next 20 years, as long as we remember to NEVER raise taxes again.

[hunter112]

True, I don't need it all at once. Incremental cutting that accomplishes the same thing is good enough for me.

My hope is that some Rats just decide that the nomination is not worth spit in '04, and just try to go against Jeb in '08. Maybe they'll clear the way for Al Sharpton!

[The Wizard]

this is a big GWB win

[Always Right]

Elimination of the IRS and replace the income tax with a national sales tax on everything but food.

You really think people are gonna pay a 40% sales tax???? The 23% proposed sales tax rate is really 30% and if you eliminate food from the tax base you will be up around 40%.

[Pukin Dog]

Thats right.

We should just boil the Rats like frogs in a pot.

By the time they know what happened to their pet social programs, they will all be dead. We need destroy the Democrati Party and drive them all into the Green party; keep them on the run like the terrorists.