Wanted: A Wary Audience
Published: January 31, 2006
When President Bush gives his State of the Union address tonight, expect to hear a renewed call for setting the administration's first-term tax cuts in concrete, combined with warnings that letting the cuts expire would retard economic growth. Nothing could be further from the truth.
As proof of tax cuts' ability to spur the economy, Mr. Bush generally cites productivity growth, job creation and the rise in personal income. Productivity has indeed been stellar, and supply-siders claim that is because tax cuts have led to investment, which led to higher productivity. But business investment has been flat for five years. Meanwhile, the benefits of productivity growth have been concentrated among the wealthy. So tax cuts haven't unleashed investment, but they have contributed to inequality.
Job growth during the Bush-era recovery has been worse, by far, than in any comparable economic upturn since the 1960's. It would take some 500,000 new jobs a month every month this year just to equal the second worst job-creation record in the modern era. And while working Americans are laboring harder, hourly wages and weekly salaries � the financial lifeblood of most Americans � have been flat or falling, after inflation, since the middle of 2003.
That last inconvenient fact isn't likely to stop Mr. Bush from bragging about rising "real after-tax income." Besides paychecks, that much-cited statistic includes things like bonuses, stock dividends and health insurance.
Dividends flow mainly to the top 5 percent of the income ladder, and health benefits, while valuable, are increasingly provided in lieu of salary. So the fact that personal income, writ large, is up "by 7 percent since I've been your president," as Mr. Bush boasted recently, isn't a measure of what is in most Americans' pockets. (Besides, a 7 percent gain is hardly worth bragging about, since the average from other comparable recoveries is 12.5 percent.)
Mr. Bush bristles at the oft-repeated criticism that cutting taxes on dividends and capital gains mainly benefits the wealthy. That's odd, because the criticism is simply a statement of the obvious, given the facts: almost half of all dividends are earned by people making more than $200,000, and more than half of all capital gains are earned by people with incomes over $1 million. "
Alfalfa, the Pretend Lawyer:
Fear of debate is a typical Liberal response. I forgive you for running/fleeing away from any discourse. Speaking of facts, they usually get in the way of Liberalsim therefore the inability for Liberals to argue same.
I may be small in many ways but I tower over you when it comes to conversing ideas and philosophies.
IMHO you seem to lack maturity, and the abiltiy to discuss adult oriented topics. If you are indeed an attorney I feel sorry for your clients.
YOur stupidity and simple minded conservatism speaks for itself. YOu shouldn't expect anyone of knowledge to enter your gutter. I'd hate to confuse you with addl facts. YOu have done such a good job of ignoring them to date. Blessed are the ignorant.
RE: That's odd, because the criticism is simply a statement of the obvious, given the facts: almost half of all dividends are earned by people making more than $200,000,
>> and what would you suggest? that companies pay dividends to all american citizens..regardless whether they own stock in the co or not.....
>>maybe the gov't should collect all co dividends and then redistribute them to all citizens....
I think there should be more equal treatment of all types of income. There is not reason that a wage earner has to pay disproportionately higher taxes just because another person's "Daddy" feathered their nest to escape wage taxes. Most income should be treated equally.
Bear.. How about a little tax equity. Maybe a limit of 10K annual non-taxable or do you really think the top 5% of income recipients need the tax relief. YOu do realize that you and I are forced to pay greater taxes to make up the shortfall. Well maybe not you.
Yep, I agree with you ....
We should tax the $hit outta you professionals and split YOUR wealth creation amongs the poor.
Why not show your Liberal generosity and volunteer 80% of your earnings to the government and let them disperese same to the needy!
Liberals love to level the playing field so everyone is equally miseralble except the Liberals running the show. They are first in line to recieve the bennies and the miserable poor get the crumbs.
Mrs sippi.. Thanks for not letting me down. Knew I could count on you for some poor southern bigoted response like that. Hell if you understood the darn tax code or bothered to read the editiorial, you would realize it is fools like you that are really underwriting the bulk of the tax cut.
I'll pass on your ignorant assumptions on me. I'll just let stand your bombast at professionals and liberals. I know it helps you feel better about your own smallness.