Bush Catches Democrats in the Tax Trap

Business Week ^ | 4/16/02 | Howard Gleckman

[LarryLied]

Another Tax Day has come and gone. And if any American is celebrating, it's George W. Bush. Not that Bush likes taxes -- he surely does not. He loves having the tax issue to wield against Democrats, however. And he has shrewdly left Democrats speechless when it comes to the subject. As a result, the party of the New Deal, the New Frontier, and the Great Society has no coherent economic message for the coming 2002 elections.

[gov_bean_ counter]

Tax cuts are bad for high tech. Why? Because they lead to deficits, which lead to higher interest rates, which lead to higher capital costs for tech companies, and eventually, to less innovation.

Oh please, I hope they try and make that argument. Overspending leads to deficits. That is all Bush has to say. Point to the 80s when revenue skyrocketed and the Dems spent it all plus. Tech companies? The Democrat's assault on Microsoft was much more dangerous than tax cuts. Chess vs checkers. The Dems bring a tee ball stand to a major league game.

[LarryLied]

The article is correct, even if their argument was solid, it is too long. Democrats go for one or, at most, two sentences. Also best if the words rhyme.

[GeronL]

when you buy a can soda or any other product, you pay that companies' so-called 'corporate taxes'... these are hidden taxes on the consumers.

Its time for a truth in taxation law, and we need to end hidden taxes.

[GeronL]

Last year my RETIRED father owed $1400, this year he owes $500...

Its a start =o)

[lentulusgracchus]

these are hidden taxes on the consumers.

It'd be easy enough to test your idea. Repeal the tax and see if the companies drop their prices for us. Think so?

[timestax]

Oh! those TaxocRATS!!!!

[GeronL]

You don't think consumers are paying companys' taxes?? where do you think companies get their money?

I could care less if they drop their prices, thats up to them. If one of their competitors did, they probably would too.

We could test your theory and charge companies 1000% tax and see if they raise their prices

[lentulusgracchus]

Point to the 80s when revenue skyrocketed and the Dems spent it all plus.

I agree with you.....Dems (and Bob Dole, behaving like the Dems' tax collector) never took the rap on the 80's deficits. They would have, if Dole hadn't been so eager to be "Mr. Responsibility" and cancel Reagan's tax cuts with DEFRA and TEFRA.

[Mo1]

Its time for a truth in taxation law, and we need to end hidden taxes.

EXACTLY

[Balata]

No matter. Bush has Democrats in a corner. They can blast the President for blowing the budget surplus until the cows come home, but without talking about taxes, they can't say what they'll do to fix the problem.

This about says it all. Dems=Higher Taxes, it's their only solution. I think that's short enough for a bumper sticker.

[LarryLied]

Looks like Bush intends to rub Democrat's snouts in this for a while

Bush calls for tax cuts to be made permanent

[lentulusgracchus]

You don't think consumers are paying companys' taxes??

Of course I do.

....where do you think companies get their money?

From us, of course.

I could care less if they drop their prices, thats up to them.

That's your value decision. I don't share it. There is no point in lowering taxes on business if they aren't going to pass it through. We aren't here to take care of them; it's the other way 'round: we are the customer, they're here to take care of us. They have to earn their own way. I'm not interested in their charging for taxes.....and then keeping their prices high and just widening margins if the taxes are removed. I'm not interested in "capital formation" as an object of public policy. They have to do that on their own. And if they won't drop prices if their cost structure declines, then to hell with them. They aren't doing us any good!

[kayak]

Taxes could be cut a lot more if this kind of garbage could be stopped ....

IRS probed for honoring specious claims

[GeronL]

???? thats called social engineering... no point in lowering taxes if they don't do what YOU want with it...

Thats what liberals are saying about YOUR taxes

[GeronL]

read #13... do you think government should decide if they like what your going to do with a tax cut before they give you one?... isn't that social engineering?

[GeronL]

but of course, we have to tell them what to do with their money right?? we'll be good Democrats... (#13)...

[Prince Caspian]

It'd be easy enough to test your idea. Repeal the tax and see if the companies drop their prices for us. Think so?

Absolutely. No short-term drop, though. But given enough time for new competition to enter the market... eventually, somebody is going to lower the price, and then everyone is force to do the same.

[Mo1]

I don't even know where to begin with post#13 ..

[GeronL]

I don't think its the governments business what people or businesses do with their tax cut

and I think that competition will do the job.