Searching For A Republican Legislative Agenda
By Pejman Yousefzadeh Posted in Featured Stories | Republicans — Comments (2) / Email this page » / Leave a comment »
Mallory Factor reminds us of an item that should be near or at the top of any Republican legislative wish list:
Only 1,295 shopping days left until a massive tax increase hits America. That's right: Unless congressional Republicans aggressively focus on extending expiring tax cuts, taxpayers will soon enough be facing the biggest tax hike in American history.
Recall the history here: When President Bush's first tax cuts were enacted in 2001, the president had to agree to a sunset clause providing that, unless extended, the tax cuts would expire at the end of 2010. This unfortunate provision nevertheless helped secure enactment of the tax bill by making the fiscal impact of the tax cuts on the budget seem smaller than it would otherwise have been counted under congressional rules. As for the pro-growth tax cuts on dividends and capital gains passed in 2003, a sunset date originally set for the end of 2008 was extended last year by a Republican Congress to the end of 2010.
But with the Democrats now in control of Congress, the political landscape has drastically changed. Rather than having to actually vote to raise taxes, the Democrats simply have to wait until the money comes to them. Of course, that's your money they want to spend on new government programs, rather than giving it back to you to spend as you desire.
There's a lot at stake here. As bad as higher income and investor tax rates will be, consider the impact on the death tax. This tax has been gradually declining since 2001, and it will reach zero -- where it ought to be -- in 2010. But it will revert to its full, absurdly high pre-2001 rate in 2011. If you're an older American, you may not want to drink that champagne cocktail your children give you on New Year's Eve 2010.
As Factor points out further in the article, there really isn't that much time for the Republicans to effect an extension of the tax cuts. They will have to move fast and to demand at every opportunity that the tax cuts be extended and made permanent. Now that Republicans have proven themselves successful in staring down Democrats over the issue of earmarks, they should get to work on the issue of tax cuts and effect a legislative victory on that front. Not only would that be good policy, it would also position Republicans well for 2008 as efforts are made to recapture the majority in Congress and keep the White House in Republican hands.
but an estimated 24 million taxpayers are going to be clobbered next year by the Alternative Minimum Tax unless something is done.
But then its the middle class being hit (just like with legalization)so I guess thats ok with the millionaires that run the republican and democrat parties.