Heritage: The Country Needs More Bushism
Many people feel that since George W. Bush was a terrible president and the end of his administration coincides with everything being in a sorry state, that it would be appropriate to respond with new and different policies. Not so J.D. Foster and William W. Beach who argue in a new Heritage Foundation paper that more Bushism than every before is needed:
Given the high level of economic pain, policymakers need to pursue stimulus policies that work. The centerpiece of an effective stimulus policy should involve two elements:
- Extend the 2001 and 2003 tax reductions for as long as possible–certainly through at least 2013 to prevent a tax increase. Better yet, make the tax reductions permanent; and
- Reduce tax rates on individuals, small businesses, and corporations through 2013 by lowering the top rate by 10 percentage points and reducing rates by similar amounts for lower income level taxpayers.
By definition, a stimulus measure is short-term. Thus, it’s impossible for making permanent changes to the tax code to be a reasonable stimulus. Indeed, in non-recessionary times federal deficits are an impediment to growth, so this could have a seriously problematic long-term impact. Meanwhile, the idea of tax-side stimulus is to put money in the hands of individuals with a high propensity to spend the money — thus giving businesses more customers and creating labor market demand so that unemployed people can find jobs. Extending tax measures that overwhelmingly benefitted the wealthiest taxpayers doesn’t fit the bill, nor does further reductions in the top rate.
A subsidiary goal one might want to accomplish with a stimulus measure it to provide direct relief to those suffering the most during the downturn. But, again, if you’re in the top income tax bracket you’re obviously not suffering very much. Long story short, this plan would deliver nothing to those in the greatest need and would stimulate demand in the least-efficient way possible. All in pursuit of the right-wing’s never-ending goal of further enriching the richest.
29 Responses to “Heritage: The Country Needs More Bushism”
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January 7th, 2009 at 5:37 pm
to give them one minor point, the thinking is that if you don’t make tax cuts “permanent,” then people will treat them as short term and not change underlying behaviors. i don’t admire the thinking especially, but it’s not completely without merit.
that said, i find it fascinating that after a brief period of uncertainty, the right has returned to its core belief: there is no circumstance that doesn’t justify cutting tax rates on high-income individuals.
i personally have come around to favoring a one-year payroll tax holiday on workers and business as the best form (and an increase in EITC and the standard deduction as the next best) of tax-cutting stimulus….
January 7th, 2009 at 5:54 pm
When I see harebrained policy suggestions like this, my ongoing assumption has been that those in the top 0.1% who pay the Foundation’s bills have no sense of history, and think they can either 1) unproductively skim the cream off of the national economy for eternity, or 2) whip out that Monaco passport when the shit really hits the fan.
However, it occurs to me that, despite the Ivy League education many of them enjoyed, they aren’t rocket scientists. They may actually believe their own propaganda.
January 7th, 2009 at 6:26 pm
Of course not that much worse an idea than raising the gas tax.
If you want to disincentive-ize using a lot of gas taxing new cars and trucks that don’t meet certain mpg standards and giving tax breaks to people who buy hybrids is a better idea (not least because people who can’t afford new vehicles won’t be affected).
It’s also the case that swapping a cut in payroll taxes for a hike in the gas tax is a bad idea. Payroll taxes – however not-very-progressive – are more progressive than any flat tax and quite a bit more progressive for a lot of people, especially the tens of millions of people who live in rural places.
Add to this the fact that people are not only going to be living longer but working longer and that quite a few of those people are not likely to accept long commutes in their later years; the payroll taxes these people pay will contribute to keeping entitlements solvent. A higher gas tax – if it does what it’s supposed to do – could have the same long term impact as high taxes on cigarettes: declining use and declining revenues.
January 7th, 2009 at 6:34 pm
Sincere question as I never paid attention in college econ classes: If I’m listening now, I’m hearing that giving $100 to lower income people is better than giving it to higher income people because the lower income people are more likely to spend it and, thus, create demand etc.
I don’t understand why lower income people are more likely to spend that cash than higher income people? Should I ask Krugman or can you answer this for me? Either way, it will really help shut up my hedge fund-employed friends (what’s left of them).
January 7th, 2009 at 6:51 pm
Let’s step back here: isn’t one of the problems of DC think-tankery that is frankly encourages the development of the Stopped Clock Foundation?
There’s no upside for Cato or Club For Growth or Heritage or AEI or the WSJ to make judgements based upon context. They only exist by saying that every set of circumstances requires tax cuts and less regulation.
I don’t understand why lower income people are more likely to spend that cash than higher income people?
Because when you’re poor, you generally postpone or forego the kind of high-ticket purchases — or even a bunch of low-ticket purchases — that become possible when you get a few extra dollars. When you live hand-to-mouth, the extra that goes in your hand gets generally gets put in your mouth, at least at the beginning.
During the days of those college econ classes, if you happened to be a poor ramen-eating student, then birthdays and Christmas were not times to eat ramen.
January 7th, 2009 at 7:52 pm
They never stop with the tax cut cure for everything, especially for those who don’t need them. EastAsia may be getting over run with Robots, but we’re up to out eyeballs in stuck on stupid wingnuts.
January 7th, 2009 at 8:46 pm
The guy in the picture may well surpass Eric Cantor as the biggest political douche picture I’ve ever seen.
January 7th, 2009 at 11:15 pm
Have you noticed that glasses with thin, almost invisible, and also vaguely square frames are favored by conservatives way more than by liberals? What up with that?
January 7th, 2009 at 11:16 pm
“The guy in the picture may well surpass Eric Cantor as the biggest political douche picture I’ve ever seen.”
he looks like newman
January 8th, 2009 at 12:25 am
I’m all for making the tax cuts permanent.
But only if we raise the tax rate of every member, past/present/future of the Heritage Foundation to 99% with no deductions.
Sound fair?
January 8th, 2009 at 7:24 am
“Broad-based tax cuts” in right-wing lexicon equals further enrichment of the wealthy.
January 8th, 2009 at 2:04 pm
Y’know, its funny but when taking advice from pedophiles, it seems that the solution to every conceivable problem involves leaving him alone with your kids.
Don’t take advice from pedophiles.
January 8th, 2009 at 7:10 pm
They may actually believe their own propaganda.
Remember that Upton Sinclair said something to the effect that it was very difficult to convince a person of the truth if his salary depended on believing a lie. Trying to get such people to go step by step in defending their positions just results in furious hostility as it becomes obvious to them that their positions are unsustainable.
As for tax cuts being a stimulus, it would seem to me that as more people are losing jobs and and others are having their income cut that a lot of people would be paying so little in taxes anyway that a tax cut wouldn’t make a whole lot of difference. At my present income level, completely eliminating my income taxes would give me something like an extra five or ten dollars a week. That isn’t going to stimulate much economic recovery.
January 9th, 2009 at 1:12 pm
Just one look at the smirking JEW in the photo should tell us one and ALL that TAX cuts aren’t necessary! Just go back and read the exact same garbageof taking care of the wealthy first espoused by the same JEW during the run to “THE GREAT DEPRESSION”! How much longer shall we continue down this JEW built HIGHWAY to HELL? Just do some homework look up the “WEIMER REPUBLIC” and its economic disaster caused by this same GREED exhibited by the WALL STREET ZIONIST JEW BANKSTER and their schemes. They destroyed Germany, threatened the German people with extinsion through starvation and stearilization as they stole property for pennies on the dollar!
How long shall we continue with this WALL STREET WELFARE PROGRAM that answerse to no one, not even our government aka WE THE PEOPLE!!!! My fellow Citizens this is no longer America its become ISRAEL WEST both in brain washed mentality due to the JEWMEDIA incessast half truths and outright lies. Just look around their feeding us HELL IN A HAND BASKET!THEY tell us that it is our responsibility to support JEW GAMBLERS on WALL STREET AND MAIN STREET ALIKE, with TRILLIONS OF OUR TAX DOLLARS. All of our hard earned money has been stolen and funneled ti either OFFSHORE ACCOUNTS or directley to ISRAEL, make no mistake its happening as Ithis one writes.Its past time that we demand accuntability for the TRILLIONS of DOLLARS stolen or as te svheming JEW will have us believe MISPLACED! Now, tell me how does one misplace TRILLIONS OF DOLLARS? The NEW YORK FEDERAL RESERVE AND ITS JEW BOARD OF DIRECTORS HAVE…. GET THIS, MISPLACED BETWEEN 3AND 4 TRILLION DOLLARS!! THEN WE HAVE THE JEW GANG ON WALL STREET AND THEIR SO CALLED “BAD INVESTMENTS” WELL ITS JUST ANOTHER MEDHOF SCHEME! WAKE UP AND SMELL THE STENCH WITHIN THE JEW COMMUNITY! IT’S LONG OVER DUE FOR WE THE AMERICAN CITIZEN TO DEMAND ANSWERS FROM THESE JEW OWNED REPRESENTATIVES THAT CALL THEMSELVES POLITITIONS!
January 10th, 2009 at 12:46 am
Wow…
Personal attacks
Namecalling
Sophomoric stereotypes
Outdated Keynesianism.
Is this really all you liberals have got?
Pretty weak. Pretty intellectually lazy.
Yawn.
February 8th, 2009 at 9:30 pm
This is in response to your futile attempt of evading answering for the FAILED ECONOMIC POLICIES OF THE PAST THIRTY YEARS!! First and foremost concerning TRICKLE down, and KEYNESIAN economics that are both failed systems! When this one addresses economics it’s “HUEY P. LONG ECONOMICS” and no other failed bullshit fed to us as a working system for none other than the wealthy beyond belief!Now that the economics have been addressed on to the Sophomoric intellectually lazy JEW and his one liners! Yeah,they call names and point fingers, but never address paragraph after paragraph of FACTS! One can call this THE JEW DIVERSION TACTIC as witnessed over and again within PNAC, AIPAC, ADL, and the other 1366 JEW “THINK TANKS” on AMERICAN SOIL. As an “AMERICAN CITIZEN” owing no loyalty to ISRAEL, or the DUAL CITIZEN JEW here in United States who creates problem after problem, then chooses the easy way out…NEVER ANSWERING THE PERTINENT QUESTIONS by using Heddie Youngmann one liners like an ELEMENTIARY SCHOOL STUDENT who just graduated from the FIRST GRADE! Fact of the matter is this one leveled your second grade JEW behind and there was no answer to FACTUAL STATEMENTS PRESENTED so you do as all good-for-nothing DUAL CITIZENS DO…….HIDE OUT WITH THE KOSHER GANG WITHIN THAT TIGHT CIRCLE OF CRIMINAL ACTIVITY AND INCESSANT LIES! YOU FALL DEEP WITHIN THE LIBBIES, THE MADHOFF’S THE FLEISCHER’S AND THOUSANDS OF OTHERS HERE IN “WE THE PEOPLES GOVERNMENT”. Never mind the one liners, with a 90 IQ what more could be expected out of a bought and paid for sheeps skin paid at the AMERICAN workers expense.. Tell us during this economic disaster do you continue standing tall wanting more of the same??
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