A Bold Beginning (President Bush's Economic Plan)

INVESTOR'S BUSINESS DAILY ^ | Wednesday, January 8, 2003 | Editorial

[Isara]

A Bold Beginning

INVESTOR'S BUSINESS DAILY

Stimulus: We may quibble with some aspects of the president's growth-and-jobs plan. But overall, it's the broader, more-ambitious approach we were hoping for.

The plan also strikes us as being thoughtful, innovative and - true again to President's Bush's word - compassionately conservative.

For conservatives, the president hit most of the right notes in setting it up Tuesday. He noted (usefully) that our economic system is still the "most promising, creative and productive the world has ever seen." He stressed (sagely) that it's best served by leaving more money in the hands of the people, not the government. He pointed out (accurately) that the current tax burden is far too heavy.

And he reminded legislators (necessarily) that while America will do whatever's needed to win any war, spending restraint won't be one of the casualties.

All of this, of course, should go without saying. But when an administration heads off in new directions with implications for the economy, it's good to hear the CEO say it again.

It was on the compassionate side of the equation, however, that we found the plan the most interesting. Here you have to look past elements such as the dividend tax relief that some dismiss as a sop to the rich, and that we doubt will do much to create what Bush says he wants most - more jobs.

The speed up in the 2004 and 2006 tax cuts, for example, should not be underestimated. This relief - topping $1,000 for the average family - won't just provide "real money to pay bills," as the president put it. It will increase demand and - if made retroactive as proposed - provide some of the "upfront" stimulus critics are demanding.

Also worth noting is that the tax cut will help the millions of Americans who include small-business income when they file their individual returns. The top rate for such individuals is now 38.6%. Under Bush's plan, it would fall to 35% - putting small-business owners on a level playing field with large corporations.

As significant as the accelerated reductions would be, Bush has gone further by calling for added relief for middle-income families. This would include a cut in the marriage tax penalty this year, instead of in 2009, and an increase in the child tax credit to $1,000 from $600. So much for the claims of some - notably Senate Minority Leader Tom Daschle - that there's nothing in Bush's plan for Middle America.

Bush's approach comes across most vividly, however, in his new "Personal Re-Employment Accounts." Under this program, unemployed workers would be given up to $3,000 to use for job training, child care, transportation, moving costs or other expenses associated with finding a new job. A person who gets a job within 13 weeks would be able to keep the leftover funds as a "re-employment bonus."

Giving money to help - and encourage - people to find work: What a refreshing alternative to the usual approach of putting and keeping them on the dole! How conservative! How compassionate!

[Isara]

Job well done, Mr. President!

[ohioWfan]

Giving money to help - and encourage - people to find work: What a refreshing alternative to the usual approach of putting and keeping them on the dole! How conservative! How compassionate!

This is MBA creativity, political savvy, conservative conviction, and genuine concern that people have jobs.

I'm not sure we have ever seen this kind of innovative, courageous, problem-solving thinking in any previous President.

[ohioWfan]

Compassionate Conservative PING!

[Wphile]

It's a great plan and I hope every element of it passes, in tact. I doubt that will happen but it should. The dems are not telling the truth about Bush's plan - imagine that! They need to be called on the carpet for it. If the Bush administration keeps up the full court press they did yesterday, they can win this whole thing. They were smart, concise, and truthful. They will need to keep hammering the dems with that in order to counter their deception.

GO GET 'EM W!

[Grampa Dave]

Isara, thanks for posting this editorial. I have bookmarked it for future use.

By now we know that our president is on the right track whenever he does something that drives the left wingers and those so called conservatives who hate him 24/7 up the wall.

This bold plan does exactly that.

Last Night Neil Cavuto had a fellow from the White House, I believe that he was the budget director. He was very blunt about the rat and other negative responses. He said that the rats criticized the plan without reading it. That they used their tired and wornout phrases again without even reading the plan.

This gentleman had a great rejoinder re those who constantly criticize and even lie about everything our president does: "Those who didn't know anything about the plan talked about it before it was released. Those who knew about the plan didn't talk about it until after President Bush discussed it."

[Isara]

My thought is that the president's team planned to have fast action of tax reform all along, but they had to get what they could get at the time. By using the same strategy Democrates have been using, that is, gradual implementation, we will get what we want to get done as long as we have clear goals in mind.

Next will be a flat tax?

[Dog Gone]

I suspect the next step will be a blue ribbon commission to look at an overhaul of the entire tax structure. All alternatives will be on the table from a flat tax to NRST to simply restructuring the current system.

But that's an ambitious proposal, and I guess I would doubt that it would get much traction before 2004.

It would be interesting to have it be one of the major campaign issues of that election.

[Wphile]

I'm hoping this is a major issue for the 2004 election and that W champions it.

The tax code is a monstrosity and it needs to go. Every single page of it. Replace with either a flat tax or a national sales tax. At this point, it doesn't matter to me. Just scrap the current code!

[baseballmom]

On Chris Matthews show last night, Kudlow and Cramer were SO enthusiastic about this plan. I thought Cramer was going to explode with his enthusiasm. Kudlow has been pushing the idea of doing away with the double taxation of dividends for a long time.

Kramer made an incredible point. He said the democRATS, in his opinion, penalize the people who have achieved success. They only want to reward the failures of the system. And he said, "And I'M a democrat". It was astonishing.

Matthews, of course, poo-pooed the plan. He knows best, dontcha know.

[justshe]

You know it is a GOOD read when you get a double-ping. Thanks to both of you!

[Grampa Dave]

Isara, I think that Dog Gone has nailed the future of tax reform with this reply:

---

" I suspect the next step will be a blue ribbon commission to look at an overhaul of the entire tax structure. All alternatives will be on the table from a flat tax to NRST to simply restructuring the current system.

"But that's an ambitious proposal, and I guess I would doubt that it would get much traction before 2004.

"It would be interesting to have it be one of the major campaign issues of that election.


Last but not least we need at least 60 republicans in the senate to vote cloture on Rat Filibuster. Schumer is going to filibuster GW's nomination of Judge Pickering.

[Dog Gone]

I wonder how many Senators it takes to change the Senate rules. I could live without ever hearing the word Filibuster ever again.

[Grampa Dave]

I think that Kramer working with Larry has been a real learning experience for him. I don't watch them very much, but when I do, I see big changes in him each time.

What you posted here is proof of his awakening: Kramer made an incredible point. He said the democRATS, in his opinion, penalize the people who have achieved success. They only want to reward the failures of the system. And he said, "And I'M a democrat". It was astonishing.

During the 2000 election on a CNBC financial slot for him he savaged GW. I sent him an email that we should brand his huge forehead with a big LLL</>. The LLL</> would let everyone know that instead of a financial expert he was a Lunatic Liberal Liar.

He is a funny guy. He believes in gun ownership, hunting and loves to eat the game that he shoots. Yet he is a card carrying, contributing and voting Rat.

Prissy Boy/Girl Chrisy Matthews is a total lost cause. He is a frontline spear carrier/thrower for the DNC. He helps to develop their attack GW mantras. He was a big pusher re the Enron fiasco. Of course he never mentioned the other lefty companies that made Enron look halfway decent.

[Grampa Dave]

I think that it was there for a good reason. To prevent stampedes by the controlling party.

However, typical of the Rats, they abuse every bit of power they can lay their hands on.

We need one of our constitution experts to answer your question.

In the meantime we can work on getting 60 Republican Senators to work with GW, starting in 2005.

[Grampa Dave]

Besides a good read, you know that you are among friends when you get two or more pings to the same thread.

You tagline is great!

[PhiKapMom]

Would agree that a Blue Ribbon Commission will be appointed and the tax structure looked at from every angle. Going to take at least 58 Republican Senators (count Miller and Nelson of NE on our side which gives 60) to get a total overhaul through.

Believe it could turn into a campaign issue that would benefit Republicans as the RATs are for the same old status quo!

We need to get some more Republicans in the Senate before anything substantial happens IMHO!

[ohioWfan]

No problem, justshe. It IS good, isn't it?

[UpToHere]

A more money in my pocket ping

Thanks

[Enterprise]

Will wonders never cease? Giving tax breaks to those who need it? Who woulda ever thunk it?

[GailA]

Good LAT article on the tax package that appeared in our local Memphis rag AKA the Commie Appeaser LAT via CA