March 11, 2001

Nation Needs Tax Cuts Most Of All For The Wealthy

President W. Bush delivered his first budget speech to a joint meeting of Congress, and even the surprised media acknowledge he did good. Only motor-boat liberals sputtered but-but-but-but-but.

Yes, say critics, he was charming; but can he deal with unexpected problems sure to arise?

A secret poll by the Columbia Broadcasting System found that 88 percent of viewers approved the president’s talk, and 66 percent supported his tax-cut proposal. Strangely, or maybe not, CBS sat on the findings. Fox News spilled the beans about its rival’s prejudice.

Bush took possession of some Democrat positions on social spending – to the dismay of right and left political wings.

Sullen Democrats were glued to their seats for most of the speech but had to rise when he proposed an 11.5 percent increase in spending on education. They clapped, but their expressions were green quince.

 Centerpiece of the president’s program is a $1.6 trillion cut in taxes over a 10-year period. He justifies tax relief by a Congressional Budget Office projection of $5.6 trillion surplus over the same period.

"The federal government is collecting more money in taxes than it needs," says Dubya. "This is the people’s money. I’m here asking for a refund."

The snarl twins of Congress – Sen. Tom Daschle and Rep. Dick Gephardt – denounce Bush’s tax cuts as mainly for the "wealthy." Only "targeted" tax cuts for "poor people" will satisfy old-line libbers.

At present, there are five graduated income tax rate percentages –15, 28, 31, 36 and 39.6.  Bush proposes to peg the rates over a ten-year period to just four – 10, 15, 25 and 33.

This would push ten percent of the lowest-rate taxpayers off the roll entirely. And (gasp!) give the wealthy a break also. Democrats consider the wealthy to include middle-rate taxpayers, who pay most of the taxes.

It is obvious that Democrat leaders are still trying to play the class warfare card. They are more interested in punishing the well-to-do than opening the doors to a better life for the working poor.

Americans have been brain-washed about "fairness" – meaning equal income regardless of ambition, hard work, self-sacrifice, saving and investment. We have forgotten the advantages of private-enterprise capitalism over redistribute-wealth socialism.

Rich people furnish investment money to create new technology, build factories, buy equipment and hire better-paid workers so new generations can repeat the process.

What the United States needs is elimination of the capital-gains tax. This enables rich people to move their money out of tax shelters and into new ventures.

So what if a few people get filthy rich? Just give the rest of us an opportunity to get a little rich – and maybe, like Bill Gates, hit the jackpot.

Democrats grudgingly admit a Jack Kennedy/Ronald Reagan style tax cut is in order. The huge, Clinton tax increase of 1992 has slowly depressed the economy of both the United States and our trading partners. Surpluses of the present magnitude are obscene.

Main fault of the W. Bush tax cut is its incremental approach. What is needed is a retroactive, 10-percent reduction of the present tax rates. Period. Spreading savings into the future encourages entrepreneurs to postpone investments until tax savings are largest.

Nevertheless, class warfare being as potent as it is, President Bush must necessarily deal with the politics of possibility. Daschle and Gephardt lead a loud cadre of liberals who would rather die than see capitalism flourish.

Thus, Bush exercises his most potent weapon – focus. Embrace a few liberal projects but move quickly on a prioritized list of big objectives. Number one – tax cuts.

The House Ways and Means Committee took up the tax-cut bill the day following the president’s speech. Within two days the bill was reported out of committee by 23-15 party line vote – ready for floor debate Monday.  

Speaker Danny Hastert has cleared the agenda for a prompt decision. Then the 50-50 Senate will niggle details but finally agree to a tax cut that will help a little.

More importantly, however, the psychological victory will establish Bush as a political leader with the power of a mandate.

The president clinched the deal during his speech last week with a Goldilocks showstopper. Displaying his now famous, quizzical smile, Dubya said, "Some think my tax cut is too much. Some think it is not enough. I respectfully disagree. It is just right."

Laughter from both sides of the aisle lay to rest the canard about his dim wit and dumb syntax. Democrats learned that when good ol’ boys from Texas smile, you should check real quick to see if you still have your drivers license.

 PARTING SHOTS

Bill hightailed for Chapaqua at 1 a.m on the New Jersey Turnpike to avoid the press asking questions about midnight pardons – leaving Hill in Washington standing alone by her man.

 * * *

President Bush (conservative) says he and British Prime Minister Tony Blair (liberal) have one thing in common – the same brand of toothpaste. Well, it’s a start.

By Lindsey Williams, columnist for Sun Coast Media Group newspapers