Brad DeLong's Semi-Daily Journal (2004)

Many small business owners are able to pay themselves mostly in dividends at the 15% rate, so it doesn't really matter what the marginal tax rate is on their personal return.

Many small business owners are arranging to pay themselves mostly in dividends, at the 15% rate, so it won't matter to them where the top marginal rate ends up.

Excellent article. It needs to be reprinted about 20 times in 10 different venues to even begin to counter the level of misinformation.

I like Wessel's opening line about "a serious debate worth having". The problem is that the Bush administration is not serious about fiscal policy. They are only serious about tax cuts. When Paul O'Neill, former Secretary of the Treasury does not believe his administration has a fiscal policy 2 years after taking office, it is clear that they are not serious. Because they are not serious, there can be no serious debate. The Bush administration has no serious framework for the relationship between their levels of spending, federal revenues and tax policy.

While good writing addresses one problem at a time, the revenue problem needs to be addressed by both increases in some tax rates or loophole closing AND by having a credible jobs program. Revenue enhancement requires a return to full employment.

I read the Price of Loyalty from cover to cover and there was not one word about a jobs policy. The only mention was that the Bush tax cuts would not be a good jobs stimulus. Jobs boost tax revenue AND decrease the demand for government services at all levels of government.

Why would a starve-the-beaster care about a serious debate? I fact this type thinks there is great virtue in dumbing and misleading the debate... Our only hope lies, unfortunately, with the few grown up fiscaly conservative republicans. Bad news: there are few of them; good news: they are increasingly pissed off and vocal.

The irony is that fiscally conservative republicans (were there any actually in office) should be among those most vociferous in their criticism of this administration. Since there are evidently so few of them that actually have principles, one may assume that they are a species which is close to extinction.

It's like Paul Krugman says: they're not out to have a serious give-and-take; they're revolutionaries out to win. Like Jean-Philippe just said, "Why would a starve-the-beaster care about a serious debate?" Ditto bahko's "They are only serious about tax cuts."

Facts would only get in the way. They don't mind twisting the facts until they're unrecognizable, as long as they get to make the Bush tax cuts permanent, and hopefully (from their POV) cut taxes on wealth even more than they have already.

...hmmm interesting that they didn't want to have carrer staffers at Treasury run the numbers on how many small business make over 200K like they did on Kerry's plan. (see http://econ4dean.typepad.com/lerxst/2004/03/treasury_used_t.html)

For one guys guess about why GOP leaders lie so much (welcome to the club, Herr Frist), see"

http://chronicle.com/free/v50/i30/30b01601.htm

K Harris, thanks for the quote. I recognize myself , and lots of other liberals I know, in this: "There is, for liberals, always something as important [than winning], if not more important, than victory, whether it be procedural integrity, historical precedent, or consequences for future generations."

Of course, it is easier for me and my friends to do this as we are personally comfortable at present, and at least for me, my kids are off to a good start. What is impossible for me to understand is how come so many people cannot figure out their own best interests. For one look at this issue, see the most recent Harper's, not on line:
Lie Down for America
How the Republican Party sows ruin on the Great Plains
Thomas Frank

"It reflects the fact-free nature of a lot of the analysis that comes out of the White House these days," complains Sen. Jon Corzine, the New Jersey Democrat who was co-chief executive of Goldman, Sachs & Co. before going into politics.

That says it all. I just wish I had come up w/ such a pithy way of saying it.

Increases in employment resulting from an increase in the number of small enterprises and entreprenuers may be true. I have had 4 calls recently from individuals wanting to contract to mow lawns.

Big guys hiding behind the little guys -- one of the oldest tricks in the book.

A couple of years ago Time Magazine (IIRC) took a poll that found that twenty percent of Americans believe that they are among the top one percent of earners and that an additional nineteen percent believe that they someday will be. Perhaps I don't read enough, but I saw exactly zero commentary from the left press on this. In contrast, the rightists thought it was just hunky-dory that such an enormous proportion of Americans believe something that ought to be intuitively false to most of those who believe it, not to mention mathematically impossible.

The Republicans (or at least the really smart ones) understand that many Americans see themselves as being among the rich, and view any infringement upon the prerogatives of the wealthy as being a direct threat to them either now or in some potentially bright future. In effect, they live vicariously through the rich. The myth of the oppressed small businessperson is of crucial importance because it offers a somewhat plausible scenario as to how anyone can get rich.

So, why, oh why, are we ruled by these liars? Well, there's another one of the reasons.

Isn't this also related to the lie about how the Estate Tax forced folks to sell the family farm?

Excellent post! By the way, where did you get the numbers for the quote referenced below?

"But most Americans today work for big firms that are taxed as corporations, not as small businesses on individual tax returns. More than 70% of Americans work for firms with more than 50 employees, and half work for firms with more than 500 employees."

Hi, Just thought I'd chime in with a differing opinion. I live in the middle of a wheat field in Southwest Kansas 22 miles from the nearest place to buy a loaf of bread. I have lived rurally most of my life, but have also lived in large metropolitan areas for some of it. Because of this duality, I understand that much of our nation's urban populace hasn't a flying flip of a clue what happens and how in the nether regions. That aside, perhaps I can shed a bit of light on the subject of the sales of family farms due to estate taxes. I can definitely attest to the fact that estate taxes cause sales of family farms. In fact the problem isn't just family farms, it is most family businesses. Many small businesses are fringe-of-solvency operations. As equity builds but cash is poor the business grows modestly and manages to maintain itself. Then later, when the older generation dies, the younger, who may have spent their lives from 8 years of age to 55 (at which time their parents and original owners just become deceased)have not saved enough cash to pay the inheritance taxes. Other siblings may wait to be paid their portion of mom and dad's estate on a buy-out, but the government is going to require cash. The only way it can be had is to sell the business. It takes extrordinary care and sacrifice of family members to keep a family business of any kind in operation--not just family farms.
Now back to the hinterland conservative issues. These rural areas are made up of many of these little businesses that do not survive without interlayering cooperation. Our charity is freely given to the needy without a need to go through channels to get it. For example, if one finds oneself without a 'ride' in this quadrant of the state, the deputies ferry them from county line to the next county and put them in the next county's deputy's car. No fuss, no explanation, just people doing for other people. This kind of thing doesn't show up in statistics--it just is. So, do not speak to me of conservative idiots who believe that they vote against their own self interest--they know exactly who pays for it. We do.

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Forsan miseros meliora sequentur - For those in misery perhaps better things will follow. (Virgil)

Experientia docet - Experience is the best teacher

Amicule, deliciae, num is sum qui mentiar tibi? - Baby, sweetheart, would I lie to you?