Paul Krugman is on the case!!!! and his conclusions are right on!!! take the fight to them!!!!
Bush's Class-War Budget
By PAUL KRUGMAN Published: February 11, 2005
...........Until now, the administration has also been able to pretend that the budget deficit isn't an important issue so the role of tax cuts in causing that deficit can be ignored. But Mr. Bush has at last conceded that the deficit is indeed a major problem.
Why shouldn't the affluent, who have done so well from Mr. Bush's policies, pay part of the price of dealing with that problem?
Here's a comparison: the Bush budget proposal would cut domestic discretionary spending, adjusted for inflation, by 16 percent over the next five years. That would mean savage cuts in education, health care, veterans' benefits and environmental protection. Yet these cuts would save only about $66 billion per year, about one-sixth of the budget deficit.
On the other side, a rollback of Mr. Bush's cuts in tax rates for high-income brackets, on capital gains and on dividend income would yield more than $120 billion per year in extra revenue - eliminating almost a third of the budget deficit - yet have hardly any effect on middle-income families. (Estimates from the Tax Policy Center of the Urban Institute and the Brookings Institution show that such a rollback would cost families with incomes between $25,000 and $80,000 an average of $156.)
Why, then, shouldn't a rollback of high-end tax cuts be on the table?
Democrats have surprised the Bush administration, and themselves, by effectively pushing back against Mr. Bush's attempt to dismantle Social Security. It's time for them to broaden their opposition, and push back against Mr. Bush's tax policy.
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Friday, February 11, 2005
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