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Friday, September 22, 2006

Will Bush Raise Your Taxes?

I'm confused by this new strategy coming from the Republicans for the fall elections because it implies Bush is too weak to stand up to Democrats if they take control of congress:

Republican Tax Deception, by James Crabtree: And so it begins. We've known for a while that the Republicans have planned to trot out a tax increase message, as a Siamese twin to "cut and run." There have been reports that the GOP would run the national campaign on security, but in local races would try to capitalize on voter concern about the economy by running hard on tax. This makes sense, particularly if you listen to reports like this on NPR this morning, showing discontent over the economy in rural areas (and noting that Dems were doing surprisingly well amongst rural voters.) And, so, no surprise yesterday when President Bush began to roll out the tax message, during a sweep through Florida yesterday...

Here's what Bush said:

Bush Leads New Offensive Featuring Economy and Linking Democrats to High Taxes, by Jim Rutenberg, NY Times: President Bush began a blistering new political offensive on Thursday, asserting that if Democrats won control of Congress from Republicans it would mean higher taxes, less money in the pockets of working families and damage to the economy.

The speech by Mr. Bush here, in which he belittled Democrats as “the party of high taxes,” signaled what Republicans described as a new phase of the White House’s fall campaign, as Republicans begin to combine their emphasis on national security with a tough new emphasis on the issue that unites them more than any other, taxes.

Mr. Bush’s offensive was backed up by a flood of television advertisements on behalf of Republican candidates.

“If they get control of the House of Representatives, they’ll raise your taxes, it will hurt our economy, and that’s why we’re not going to let them get control of the House of Representatives,” the president said...

“The Democrats have made their position clear,” Mr. Bush said. “I want you to remember the last time they had control of the United States Congress back in 1993, they passed a massive tax increase.” ...

It will take two to do the tax Tango. If Democrats win back the house, they can't pass any legislation unless Bush signs it - they won't be able to overturn a veto. Is Bush saying that if tax increase legislation comes to him, he won't veto it?  He must be, because if he vows "Read my lips, no new taxes," then there's no reason to believe taxes will go up. But he's not saying that.

Update: From comments:

...[Y]ou are overthinking this.  If we can be sure Bush believes in one thing, it is that cutting taxes always helps the econony, and raising taxes hurts it.  ...  Bush truly believes it.  So, no, of course he won't allow a Democraticly controlled Congress to raise taxes.  And, yes, of course he would veto such a bill.

So what did he mean? He has just simplified (dumbed down, if you will) his main point so that voters will get it: Democrats will not allow my tax cuts to become permanent.  True, not the same thing as "raising" taxes, but after 5 plus years of lower taxes, having the marginal rates "return" to their pre-cut rates would be the same thing ... as voters (who vote on the issue of lower tax rates) see it.

    Posted by on Friday, September 22, 2006 at 09:32 AM in Economics, Politics, Taxes | Permalink  TrackBack (0)  Comments (27)


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