September 19, 2006
Dem '08ers To Dem Leaders: Don't Repeal Bush Tax Cuts
At least two Democratic presidential candidates aren't thrilled with the prospect that Dems in Congress might try to repeal the series of income tax cuts associated with President Bush.
In Iowa yesterday, ex-VA Gov. Mark Warner said his party had taken "the wrong approach" on the tax cuts, and singled out Sen. John Kerry's presidential campaign for ignoring the widespread appeal of a lower tax burden. Said Warner: "Even though the Bush tax cuts only applied to the top 2 percent of Americans, what I think the Kerry campaign missed was that the other 98 percent of Americans still aspired to get to the point in their life where they could qualify for the tax cuts."
Kerry and other Dem candidates wanted to roll back the income tax rate changes for wealthy Americans to pay for more domestic spending.
According to the Des Moines Register, "Warner said wealthier Americans may be willing to support what would essentially be an income-tax increase, but only if it is portrayed as part of a fiscal strategy that includes trimming government waste and curbing spending."
He took that approach in Virginia, although the state legislature wouldn't submit to an increase in income tax rates. Instead, a coalition of Republicans and Democrats gave Warner a slight tick up in the sales tax and a boost in the cigarette tax. It raised about $1 billion in revenue. The acquiescence of Republicans and voters in one of the most distinctly anti-tax states in the union suggests to some analysts that voters nationally are more willing to pay more if they can taste how the increased revenue will help them educate their children or drive customers to their businesses.
Sen. Hillary Clinton has also voiced doubts about repealing the Bush tax cuts. Before a speech on the economy in Chicago, she told Bloomberg that she wasn't sure whether she'd want to see pre-Bush tax rates "restored." Said Clinton: "I'm not sure that that's exactly what we should do, but I think the combination of fiscal responsibility and economic growth proves to be very positive for our country."
It's safe to say that '08 Democrats will propose a healthy amount of domestic spending. They'll promise to fund some of it by squeezing more efficiency out of the current budget. But where will they get billions for health care, schools and even to increase the number of Special Operations forces?
Would they repeal the Bush tax cuts? Would they cut spending elsewhere? Would they raise taxes?
Posted at 01:05 PM
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