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Friday, January 06, 2006

Economy is good...I blame Bush

--posted by Tony Garcia on 1/06/2006

Let's see, remember how the economy was (incorrectly) reported by Democrats in 2004 as being horrible? Remember how they promised the end of the world if Bush won? Remember how they claim that tax cuts would devastate the economy?

Here is the latest news on the economy.
The seasonally adjusted growth in nonfarm payrolls was less than the 205,000 expected by economists, but upward revisions to prior months totaling 71,000 put total payrolls near the expected level of 134.5 million.
Job growth:
"This was a relatively healthy report despite the headline figure," said Stephen Stanley, chief economist for RBS Greenwich Capital.

Politicians were quick to respond. "I think the economy is continuing to move forward. I think this is an indication of that," said Treasury Secretary John Snow in an interview on CNBC. "I'm confident we are going to see continuing good strong growth with a lot of job creation in 2006."
Now I know that the Liberals want to fight tax cuts, especially permanent ones. But their own logic causes a dischord in this position. Remember that they accept the premise that taxes discourage behavior. That is one of the reasons they keep advocating higher and higher taxes on tobacco. The logic being that taxes will make the tobacco expensive enough to discourage smoking.

I agree.

They also hold the corollary...tax breaks encourage behavior. That is why there are tax breaks on mortgages, tax breaks for sending your children to college and so on.

I agree with that fact (though I disagree with the social engineering aspect of these policies).

However they then ignore those economic facts and continue wanting to tax labor, savings, retirement and taking care of one's children. They want to tax successful investing.

They are either lying about their intentions or opposing tax cuts for strictly partisan reasons at the expense of a healthy economy.

In order to keep this economy going and the job growth growing we have to demand permanent tax cuts. Income taxes discourage working. Captial gains tax discourages investment (which includes 401K, retirement accounts, pensions, small business startups and investments in business that consequently results in job growth and/or increased wages). Interest income taxes discourages savings. Death taxes (estate taxes) discourage parents from leaving a nest egg for their children or grandchildren. What kind of horrid people/politicians would discourage parents from taking care of their children? Well, those who oppose ending the Death taxes.

The economy is very important to everyone. That is why the Democrats tried to scare everyone during 2004 that the economy was (erroneously) in bad shape. In order to keep the economy strong we need to demand (1) more and more permanent tax cuts and (2) responsible and minimal government spending on only necessities (military and, at the federal level, the judiciary and the treasury).


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