Kash of Angry Bear bangs his head against the wall as he watches George W. Bush pretend that the expiration of tax cuts is just something he found in the middle of the road and is trying to fix:
Posted by DeLong at March 9, 2004 11:43 AM | TrackBack | | Other weblogs commenting on this postLast Thursday President Bush talked about the economy while visiting Bakersfield, CA. As usual these days, he used the chance to lobby for making the 2001 tax cuts permanent:
[W]e need to make sure the tax cuts are permanent. See, the tax cuts are set to expire. That's what a lot of people don't understand. This is an important part of the dialogue in Washington, D.C. now, is how to make sure the economy continues to grow. These job creators need certainty in the tax code. You can't have taxes go down one year and up the next. They need certainty when it comes to planning. They need to be able to have certainty when it comes to their investment deductibility. That's what they need. And yet aspects of the tax code are set to expire.
Those dastardly, devious Washington D.C. types! How could they arrange such a terrible tax system where taxes are going down one year and up the next?
In fact, he's right - uncertainty in the tax code really does tend to inhibit business spending. So who is responsible for these down-one-year, up-the-next tax cuts? Of course, Bush did sign these down-and-up tax cuts into law back in 2001 – but at least he must have really chewed them out for setting up such a crazy tax scheme, right?
George Bush, June 7, 2001: Remarks by the President in Tax Cut Bill Signing Ceremony: This tax relief plan is principled. Today is a great day for America. It is the first major achievement of a new era, an era of steady cooperation. And more achievements are ahead. I thank the members of Congress in both parties who made today possible. Together, we will lead our country to new progress and new possibilities. It is now my honor to sign the first broad tax relief in a generation.
Remember this, whenever you hear Bush talk about how harmful it is for the economy to have taxes changing erratically from year to year: he didn't think it was such a bad idea back in 2001. In fact, he thought the 2001 tax cut plan, with its down-and-up taxes, was a great idea. Why? Because, as has become standard operating procedure in the Bush White House, political expediency trumped economic sensibility. And that is exactly why after three years in office, the Bush White House has been unable to do anything to help the economy.
Can we add this to Kos' list (www.dailykos.com) of Bush the Younger's "flip-flops" on policy?
June, 2001: Thought that a tax plan containing future uncertainties was a "major achievement".
March, 2004: Thinks that a tax plan containing future uncertainties is reprehensible.
Posted by: oneangryslav on March 9, 2004 11:56 AMDear Brad, OT, but:http://atrios.blogspot.com/
Posted by: David Malthus on March 9, 2004 12:20 PMback to on-topic: not only was Bush happy with the sunset provisions in 2001, it was blindingly obvious at the time that the bill had been written in a totally cynical way for the GOP to campaign on exactly the same tax cuts again in 2004. I spent enough time telling all my friends what was going on that my wife got really sick of hearing it. I think Krugman wrote a column to similar effect.
all for naught -- nary a single lead reading 'just as critics like Krugman predicted in 2001, the administration..'
Posted by: wcw on March 9, 2004 12:28 PMMBA Bush no longer uses his tax cut logic of 2002, "when businesses take risks, they need certainty..."
In part, the logic isn't needed, because where is the risk any more for Halliburton, defense contractors, big agriculture, pharma and HMOs?
- Risk
- personal Responsibility
I knew that these were going away based on the Bush play book, but is there a third R which Bush has made obsolete? That would be perfect for the "Education President"
Posted by: J Edgar on March 9, 2004 12:28 PMThe same logic applies to the Bush/RNC spin that the Dems are proposing increased taxes. The only tax increase that is scheduled to happen is the one contained in the bill signed with such gusto by Dubya in 2001.
Posted by: P O'Neill on March 9, 2004 01:07 PMDemocrats have to be especially carefully of the tax issue. Think of California and Oregon and Alabama and New York City. Voters simply do not want tax increases now, and have shown that decisively. Allowing expiring tax cuts to return rates to previous levels will be viewed as tax increases and will likely cost Democrats votes and possibly the Presidency. California voters especially showed they are far more contented with debt than with taxes!
Posted by: Ari on March 9, 2004 01:14 PMNice try, but the expiration clauses were the only way to shove the original tax cuts past certain people in Congress who are highly allergic to any effective tax cuts, any time, anywhere. We all knew this at the time. Didn't you?
Posted by: tbrosz on March 9, 2004 02:02 PM"the expiration clauses were the only way to shove the original tax cuts past certain people in Congress who are highly allergic to any effective tax cuts"
Actually, the expiration clauses were a gimmick that were used by tax cut supporters to avoid compromising on the tax cut package. They did not want to go slow with a smaller more affordable cut. Instead they insisted on the full monty, then used gimmicks to bring the bottom line in under target. They even resisted the triggers of Snowe and Bayh that would have put the brakes on the tax cuts if they plunged the budget into dizzying deficits. This my way or the highway approach was done in order to steamroll the Democrats and GOP moderates with the idea that they would pass the rest of their ill-conceived tax cuts later. Reality caught up with them. The tax cuts were way too big. They have created a massive revenue shortfall. Now it will be very difficult to extend them at all because they we have witnessed the full monty. The tax cut has no clothes and all its warts wrinkles and ugly deficits are on display. We have seen the tax cuts and are repulsed.
BTW- the tax cuts have been very effective at transferrring our tax dollars into the pockets of the wealthy. Their effect on the economy is minimal and the stimulation of jobs pathetic.
Posted by: bakho on March 9, 2004 02:17 PMI'm sorry, did you say "effective"???
Posted by: Dubblblind on March 9, 2004 02:21 PMBakho, you got in the middle, my previous post was directed to tbrosz.
Posted by: Dubblblind on March 9, 2004 02:24 PMPerhaps the Bush re-election slogan should be, "Let the kids pay!" or perhaps, "No child left unencumbered!"
Posted by: joe on March 9, 2004 02:39 PMAnd still the basic point remains: Bush triumphantly signed into law a tax bill with cuts that expired, sunsetted, reverted, or whatever term you want to use.
At the time, he sure thought it was a good idea to have the cuts expire. Why is it a bad idea now?
I think that's the question the Democrats (forget about the fifth estate) should be asking. And they can run on saving us all from the expiration of the cuts by setting up a fairer tax regime.
To what extent were the sunset provisions
(1) just to be able to present rosier looking deficit numbers in the out years, for political purposes (i.e., to prevent opposition rhetoric from getting out of control);
(2) to make the tax bill filibuster-proof;
(3) to allow the tax bill to evade the Budget Enforcement Act (and its revisions)?
So how many jobs did Bush forego by focusing on tax cuts instead of effective stimulus? A million? Two million?
If we can't attach a number to it, we might as well forget it.
Posted by: Jack on March 9, 2004 06:43 PMBruce Reed wrote a hilarious column on hacks v wonks in Washington Monthly.
http://www.washingtonmonthly.com/features/2004/0403.reed.html
"A president must know the real problems on Americans' minds. For that he needs hacks. But ultimately, he needs policies that will actually solve those problems. For that he needs wonks. President Bush has husbanded some big policy changes through Congress--a testament to his considerable political skills. Unfortunately, his policies seem to be better at causing problems than solving them. ...With a record $521 billion deficit, Bush has just presented what might be called the Justin Timberlake budget, ripping off the taxpayers and pretending it wasn't on purpose.
... ideology is just a convenient rationalization for why the president's agenda isn't working. The real reason is darker and more disturbing: The Bush White House is so obsessed with the politics of its agenda that it never even asks whether it will work."
Posted by: bakho on March 9, 2004 10:42 PMBush's Three R'nts
Risk
Responsibility
Rememberin'
Never learned 'em, never will.
Posted by: J Edgar on March 9, 2004 10:49 PMNice try, but the expiration clauses were the only way to shove the original tax cuts past certain people in Congress who are highly allergic to any effective tax cuts, any time, anywhere.
Actually, no. They were to shove it past certain people in Congress -- on both sides of the aisle -- that were worried about their credentials on fiscal responsibility if the price tag was too high, even with the prospect of surplus extending out for many years ahead.
What a marvellous array of names we have here: "J Edgar," "David Malthus," "P O'Neill," "dubblblind"...
I assume the last is a bubble gum with medicinal properties.
Am I a freak for writing stuff over my own name?
-dlj.
Well, David, you are not the only one, even if what little I write is of lesser interest.
As for "dubblblind", I reckon it's rather a reference to double blind testing. i.e. those who do the testing do not know what they are applicating.
DSW
Posted by: Antoni Jaume on March 11, 2004 09:22 AMGreed has become so deeply entrenched as an acceptable personal characteristic (thank St. Reagan for his single enduring legacy) that both flavors of our elected officials see nothing wrong with letting the corporations write our laws. Just leave your campaign contribution here (brown-bag delivery will be fine), then fill in the blanks as to how to address your industry's problem...can't quite swing that winter house in St. Bart's, let me help with an extra $58,000 from the IRS!
Getting the unwashed populace to vote for this arrangement is a minor biennial inconvenience that can be handled with focus groups and marketing strategies. Eighteen frames of nipple vs. three million job losses and forty million people without health access? What issue do you think they're gonna address? The horror of dirty words, of course! So what if half the population stays away in disgust.
Bush is a Herbert Hoover for the 21st Century--> you couldn't have a better friend in the world if you can only afford to go to one of his $2000 lunches.
Posted by: Jimbob on March 13, 2004 03:37 AMGratitude is not only the greatest of virtues, but the parent of all others.
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