May 06, 2005

Bush's Evil Tax Cuts For The Poor!

A frequent refrain among Democrats is that Bush's tax cuts are slanted to the rich. This is untrue in that the bracket cuts were overwhelmingly targeted toward the poor. Many poor people were removed entirely from the income tax brackets while others saw dramatic reductions. But because rich people pay phenomenally higher amounts every year to the IRS, even a modest - say, 0.5% or 0.1% - reduction in the top income brackets would equal a larger absolute cut for the rich. Banking on ignorance and selfishness, the Democrats pressed forward with this attack even though it was obviously unfair.

Of course, they're not going to make the same accusation about a recent Bush proposal (covered in the linked Krauthammer op-ed) that would preserve the promised benefits for low-income SocSec recipients and phase it out in stages for wealthier recipients. In other words, a tax hike on the rich that comes in the form of a benefit cut. Will the Democrats applaud Bush's move? Will they acknowledge that he's making positive moves for compromise? Will they try to meet him halfway in order to preserve Social Security?

I wish Tradesports had a line on this; in a heartbeat I'd buy shares against.