Posted on 01/08/2003 7:01:44 AM PST by Isara
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!
The great one, Ronald Reagan.
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