Three cheers for President Bush. After his persuasive efforts with congressional leaders summoned to the White House, the US Senate on Friday voted to agree to the federal tax cut bill passed by the House on the previous day. All that separates the bill from implementation is the president's signature.
The measure drops stock dividend and capital gains tax rates to a maximum of 15 percent and lowers all marginal income tax rates across the board. This tax cut is actually larger than the one President Bush lobbied for in the first place but uses a classic congressional ploy, the sunset provision, to camouflage it’s larger significance. Although the tax cut is admirably large and will provide substantial “stimulus” to our economy I agree with Tom DeLay’s assessment that this is only a first step in tax relief.
There are so many things to say in praise of this paring back of the welfare state in America, but it can well be summed up in the words of Rush Limbaugh, “The economic slowdown is officially over.”
UPDATE: Today on Fox News Sunday, Democrat Presidential candidate Joe Lieberman was asked about the sunset provisions in this tax cut, "if you were president, would you allow those tax cuts to expire, and taxes to go back up in the years 2005 and 2008?"
Lieberman's responses included, "...these folks are making a bet...and the problem is they're betting our money." This quip supports the belief of 79 percent of Americans in a recent poll that Congress "thinks of tax revenues as their money to spend as they wish," while only 14 percent believe Congress thinks of it as "taxpayer money to spend carefully."
He also said, "we need $150 billion [in cuts] this year, and no more after that for a while." My interpretation of candidate Lieberman's answer to the question asked is, "Why, of course I would."
Posted by JohnGalt at May 25, 2003 12:15 PMHooray for the President indeed. But you are a little kinder to the Legislative branch than I.
The cap gains cut is nice -- as is the larger reduction, but Congress had a golden opportunity to end the double taxation on dividends. A zero rate would be fair, would promote good corporate governance, and would give investors cause to capitalize solid value companies and build their own wealth.
Leaving the 15% tax around, I fear is like not killing the monster at the end of the movie. This tax will spring to life when the young girl is alone in the old house with the electricity out...
Posted by: jk at May 26, 2003 10:36 AM