No Free Lunch
Republican strategists hope voters will be impressed by 70 billion in new tax cuts. It’s expected to give a much needed political boost to Bush and Congressional Republicans, because a tax cut strategy has worked for the Republican party in the past, and they hope it will work again.
The Republican controlled House passed the bill with a straight party line vote and the Senate quickly followed with a 54-44 vote. The White House is confident that voters will again fail to recognize that there is no free lunch.
Democrats have repeatedly pointed out that during a time of war tax cuts are fiscally irresponsible and result in out control deficits. These tax cuts are a gift for the wealthy, especially the extension of a tax break on capital gains and dividends. Democratic Minority Leader, Harry Reid said that the Exxon boardroom is cheering, but the people that work for Exxon are not cheering.
The tax cut package has sparked a political battle over who benefits from these cuts. Republicans say everyone gains, while Democrats say the tax cuts are just another taxpayer giveaway to the wealthiest Americans. According to the Tax Policy Institute, low-income earners, $20,000 to $30,000 a year, will have their taxes reduced by about $9 a year. Those earning $50,000 to $75,000 a year will gain $110. Anyone earning between $100,000 and $200,000 will get to keep almost $1,400. Those of you that make a million, will save a whopping $42,000. You'd expect the tax cut to be bigger for higher income people. However, the higher the income is, the larger the tax cut is as a share of income.
Congressional Republicans have been slicing tax rates for five years. Nonpartisan observers insist a major security threat is looming. They say it’s irresponsible to add another $70 billion to the deficit at a time when the debt is heading toward $9 trillion, with competitive foreign governments like Communist China holding much of the debt.
The Republican controlled House passed the bill with a straight party line vote and the Senate quickly followed with a 54-44 vote. The White House is confident that voters will again fail to recognize that there is no free lunch.
Democrats have repeatedly pointed out that during a time of war tax cuts are fiscally irresponsible and result in out control deficits. These tax cuts are a gift for the wealthy, especially the extension of a tax break on capital gains and dividends. Democratic Minority Leader, Harry Reid said that the Exxon boardroom is cheering, but the people that work for Exxon are not cheering.
The tax cut package has sparked a political battle over who benefits from these cuts. Republicans say everyone gains, while Democrats say the tax cuts are just another taxpayer giveaway to the wealthiest Americans. According to the Tax Policy Institute, low-income earners, $20,000 to $30,000 a year, will have their taxes reduced by about $9 a year. Those earning $50,000 to $75,000 a year will gain $110. Anyone earning between $100,000 and $200,000 will get to keep almost $1,400. Those of you that make a million, will save a whopping $42,000. You'd expect the tax cut to be bigger for higher income people. However, the higher the income is, the larger the tax cut is as a share of income.
Congressional Republicans have been slicing tax rates for five years. Nonpartisan observers insist a major security threat is looming. They say it’s irresponsible to add another $70 billion to the deficit at a time when the debt is heading toward $9 trillion, with competitive foreign governments like Communist China holding much of the debt.
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