Two Days in and Rubin Says......RAISE TAXES!

[DKW 86 7,440]

http://www.opinionjournal.com/editorial/fe...ml?id=110009243

Rubin's Tax Gambit

Raising taxes in a housing slump isn't the smartest policy.

Tuesday, November 14, 2006 12:01 a.m. EST

That was fast. A mere two days after Democrats capture Congress claiming they wouldn't raise taxes, former Treasury Secretary Robert Rubin tells them they should do so anyway.

"You cannot solve the nation's fiscal problems without increased revenues," declared Mr. Rubin, the Democratic Party's leading economic spokesman, in a speech last Thursday. He also took a crack at economic forecasting by noting that "I think if you were to increase taxes right now, you would have probably about zero negative effect on the economy." The economics and politics here are worth parsing.

We suppose it's reassuring that Mr. Rubin now thinks the economy is strong enough to withstand a tax increase. That's a switch from his opposition to the 2003 Bush tax cuts, which he predicted would bust the budget and do little for growth. The U.S. economy proceeded to grow by an average of nearly 4% a year for three years following mid-2003, until the recent slowdown due largely to the housing slump.

Everyone makes mistakes, but raising taxes amid a housing decline doesn't sound like brilliant policy to us. Depending on inflation signals in the coming weeks, the Federal Reserve may not be done raising interest rates. The best hope for avoiding a recession next year and into 2008 is that strong corporate profits and the tight job market will lift business investment and consumer spending enough to offset the impact of tighter monetary policy. The last thing the economy needs now is a tax increase, too.

[otterinbham 0]

Oh. THAT would work. Good God...what a predictable bunch these guys are.

Here's a better solution: Cut spending. Ditch the stillborn Prescription Act. Veto some pork barrel projects. Reform Social Security.

[Tigermike 3,053]

Here's a better solution: Cut spending. Ditch the stillborn Prescription Act. Veto some pork barrel projects. Reform Social Security.

Now Otter, you know dems are not and have never been in favor of cutting spending. Pork will not be cut with the Pork Queen in the Speakers chair and the only reform of Social Security they have in mind is increases.

Yes they are a predictable bunch.

I think the Blue Dogs better get ready for a bitchslap from the libs in power.

[otterinbham 0]

Here's a better solution: Cut spending. Ditch the stillborn Prescription Act. Veto some pork barrel projects. Reform Social Security.

Now Otter, you know dems are not and have never been in favor of cutting spending. Pork will not be cut with the Pork Queen in the Speakers chair and the only reform of Social Security they have in mind is increases.

Yes they are a predictable bunch.

I think the Blue Dogs better get ready for a bitchslap from the libs in power.

Well, the Dems are not going to increase any taxes. They just don't have the votes for it.

Oh, and here's a nifty idea. Maybe the president could use this cool thing known as a VETO. I know it hasn't been used in years, but it's the surest way possible to halt spending, especially when dealing with a divided congress.

The problem is that we have a president who has indulgently looked on while a freewheeliing congress of his own party broke the bank.

[TexasTiger 13,017]

Here's a better solution: Cut spending. Ditch the stillborn Prescription Act. Veto some pork barrel projects. Reform Social Security.

Now Otter, you know dems are not and have never been in favor of cutting spending. Pork will not be cut with the Pork Queen in the Speakers chair and the only reform of Social Security they have in mind is increases.

Yes they are a predictable bunch.

I think the Blue Dogs better get ready for a bitchslap from the libs in power.

Well, the Dems are not going to increase any taxes. They just don't have the votes for it.

Oh, and here's a nifty idea. Maybe the president could use this cool thing known as a VETO. I know it hasn't been used in years, but it's the surest way possible to halt spending, especially when dealing with a divided congress.

The problem is that we have a president who has indulgently looked on while a freewheeliing congress of his own party broke the bank.

No congress will raise tax rates anytime soon. They may not renew tax cuts when they expire in 2010, but won't vote to change the rates.

[rexbo 104]

Here's a better solution: Cut spending. Ditch the stillborn Prescription Act. Veto some pork barrel projects. Reform Social Security.

Now Otter, you know dems are not and have never been in favor of cutting spending. Pork will not be cut with the Pork Queen in the Speakers chair and the only reform of Social Security they have in mind is increases.

Yes they are a predictable bunch.

I think the Blue Dogs better get ready for a bitchslap from the libs in power.

Well, the Dems are not going to increase any taxes. They just don't have the votes for it.

Oh, and here's a nifty idea. Maybe the president could use this cool thing known as a VETO. I know it hasn't been used in years, but it's the surest way possible to halt spending, especially when dealing with a divided congress.

The problem is that we have a president who has indulgently looked on while a freewheeliing congress of his own party broke the bank.

No congress will raise tax rates anytime soon. They may not renew tax cuts when they expire in 2010, but won't vote to change the rates.

If my taxes go up because of action or inaction from the Democrats, then they have raised my taxes. And I will hold them accountable...

[Tigermike 3,053]

Here's a better solution: Cut spending. Ditch the stillborn Prescription Act. Veto some pork barrel projects. Reform Social Security.

Now Otter, you know dems are not and have never been in favor of cutting spending. Pork will not be cut with the Pork Queen in the Speakers chair and the only reform of Social Security they have in mind is increases.

Yes they are a predictable bunch.

I think the Blue Dogs better get ready for a bitchslap from the libs in power.

Well, the Dems are not going to increase any taxes. They just don't have the votes for it.

Oh, and here's a nifty idea. Maybe the president could use this cool thing known as a VETO. I know it hasn't been used in years, but it's the surest way possible to halt spending, especially when dealing with a divided congress.

The problem is that we have a president who has indulgently looked on while a freewheeliing congress of his own party broke the bank.

No congress will raise tax rates anytime soon. They may not renew tax cuts when they expire in 2010, but won't vote to change the rates.

Are you sure it's 2010? I was thinking the cuts were due for a renewal vote at the end of the year? Anything can happen by 2010. Heck by then there may be a muezzin in every neighborhood.

[TexasTiger 13,017]

Here's a better solution: Cut spending. Ditch the stillborn Prescription Act. Veto some pork barrel projects. Reform Social Security.

Now Otter, you know dems are not and have never been in favor of cutting spending. Pork will not be cut with the Pork Queen in the Speakers chair and the only reform of Social Security they have in mind is increases.

Yes they are a predictable bunch.

I think the Blue Dogs better get ready for a bitchslap from the libs in power.

Well, the Dems are not going to increase any taxes. They just don't have the votes for it.

Oh, and here's a nifty idea. Maybe the president could use this cool thing known as a VETO. I know it hasn't been used in years, but it's the surest way possible to halt spending, especially when dealing with a divided congress.

The problem is that we have a president who has indulgently looked on while a freewheeliing congress of his own party broke the bank.

No congress will raise tax rates anytime soon. They may not renew tax cuts when they expire in 2010, but won't vote to change the rates.

Are you sure it's 2010? I was thinking the cuts were due for a renewal vote at the end of the year? Anything can happen by 2010. Heck by then there may be a muezzin in every neighborhood.

I'm not sure. I heard it on some show the other day.

[Tigermike 3,053]

Here's a better solution: Cut spending. Ditch the stillborn Prescription Act. Veto some pork barrel projects. Reform Social Security.

Now Otter, you know dems are not and have never been in favor of cutting spending. Pork will not be cut with the Pork Queen in the Speakers chair and the only reform of Social Security they have in mind is increases.

Yes they are a predictable bunch.

I think the Blue Dogs better get ready for a bitchslap from the libs in power.

Well, the Dems are not going to increase any taxes. They just don't have the votes for it.

Oh, and here's a nifty idea. Maybe the president could use this cool thing known as a VETO. I know it hasn't been used in years, but it's the surest way possible to halt spending, especially when dealing with a divided congress.

The problem is that we have a president who has indulgently looked on while a freewheeliing congress of his own party broke the bank.

No congress will raise tax rates anytime soon. They may not renew tax cuts when they expire in 2010, but won't vote to change the rates.

Are you sure it's 2010? I was thinking the cuts were due for a renewal vote at the end of the year? Anything can happen by 2010. Heck by then there may be a muezzin in every neighborhood.

I'm not sure. I heard it on some show the other day.

This is from an article from May 11.

Virtually all of President Bush's tax cuts in addition to those passed Thursday — rate reductions for individuals, a bigger child tax credit, the elimination of estate taxes and the tax cuts for stock dividends — will also expire simultaneously at the end of 2010.

The struggle to extend Mr. Bush's tax cuts reflects the broader difficulties of Republican leaders. Fiscal conservatives in the House are pushing for deeper cuts in spending, including on programs like Medicaid. But Republican moderates, particularly in Northeastern states that lean Democratic, are pushing in the opposite direction.

[CCTAU 3,345]

Nows a good time to pass a line item veto bill.......

[DKW 86 7,440]

Here's a better solution: Cut spending. Ditch the stillborn Prescription Act. Veto some pork barrel projects. Reform Social Security. Be still my beating heart...

Now Otter, you know dems are not and have never been in favor of cutting spending. Pork will not be cut with the Pork Queen in the Speakers chair and the only reform of Social Security they have in mind is increases.

Yes they are a predictable bunch.

I think the Blue Dogs better get ready for a bitchslap from the libs in power.

and

The "Blue Dogs" are/were a naive bunch. They are about to get an ugly dose of political reality. If someone can get Bush a veto stamp again maybe he can show that he is more than just about the Iraq War.

[otterinbham 0]

Here's a better solution: Cut spending. Ditch the stillborn Prescription Act. Veto some pork barrel projects. Reform Social Security. Be still my beating heart...

Now Otter, you know dems are not and have never been in favor of cutting spending. Pork will not be cut with the Pork Queen in the Speakers chair and the only reform of Social Security they have in mind is increases.

Yes they are a predictable bunch.

I think the Blue Dogs better get ready for a bitchslap from the libs in power.

and

The "Blue Dogs" are/were a naive bunch. They are about to get an ugly dose of political reality. If someone can get Bush a veto stamp again maybe he can show that he is more than just about the Iraq War.

Well, like I said in previous posts, the entire objective of the electorate was to wrest control from the hands of a hit-or-miss president and an irresponsible Congress. The swing, while giving control of the Congress to the Democrats, was not enough for them to effect wide ranging changes to current public policy. Personally, I think the voters of the country view the Democrats with equal suspicion, and are unwilling to hand the levers of Congress wholly over to the feckless likes of Pelosi and Reid. Yes, they hold a majority. But it's paper-thin at best, despite the execrable performance of the Bush administration over the past three years.

Now that the Republicans are forced to be honest again, the subject of preserving tax cuts should be agenda #1 for the 2008 elections. Yes, the tax cuts created large deficits in their first few years. But now, as a percentage of the country's overall GDP, the budget deficit is lower than all but the last three years of the Clinton administration--which only achieved their benchmark with much higher taxation levels. Further, lower tax rates have resulted in higher than expected tax collections (Capital Gains taxes are a shining example), the result of the boost lower taxes have provided the economy. As a result, unemployment remains below the 5% mark (half that of Europe) and economic and productivity growth remains twice that of Europe.

So, if the Republicans are smart, their #1 issue for the Congressional elections should be that of permanently enshrining tax cuts, along with proof of the effect these cuts have had on our current economic strength.

[AURaptor 1,126]

Oh. THAT would work. Good God...what a predictable bunch these guys are.

Here's a better solution: Cut spending. Ditch the stillborn Prescription Act. Veto some pork barrel projects. Reform Social Security.

Now now....the Dems are looking to take us in a new direction. That means an economic slow down, higher unemployment, and a drop in the stock market.

[CCTAU 3,345]

Oh. THAT would work. Good God...what a predictable bunch these guys are.

Here's a better solution: Cut spending. Ditch the stillborn Prescription Act. Veto some pork barrel projects. Reform Social Security.

Now now....the Dems are looking to take us in a new direction. That means an economic slow down, higher unemployment, and a drop in the stock market.

But that's why they wer voted in...the people wanted a change. Unfortunately, they aren't clever enough to figure out that the people do not want them to change the things that are WORKING.

Dims=Change for the purpose of change=change.