More on Tax cuts and flip flopping

George Bush cracks me up (the same way that the iceberg cracked up the Titanic).

He made a huge campaign issue out of Kerry's alleged "flip-flops," and of course, he never changes his mind (except on the creation of the Department of Homeland Security and the 9/11 Commission--which he opposed and then took credit for). Bush has proven to be a resolute (read: bullheaded) leader on one issue: Tax cuts. Regardless of the economic circumstances or world events, we apparently still needed a $1.9 trillion dollar tax cut.

Tax Cuts to "Give Back" the Surplus
When he was running for President in 2000, Bush told us in his first debate with Al Gore, that we needed the tax cuts, because the country had been so prosperous in at the end of the 1990s that we should give some of the money back to the people (Sigh, remember prosperity?) CNN reported Bush's comments:

"I want to send one-quarter of the federal budget surplus back to the people who pay the bills," he said. " Of the surplus, which some government accounting entities have predicted could amount to more than $4 trillion over the next decade, Bush said of the $25 trillion the government takes in the course of the next 10 years -- including the surplus -- "surely, we can afford to give back 5 percent of what comes into the treasury."

First, imagine what kind of shape we'd be in with a $4 Trillion dollar surplus, instead of a $500 Billion dollar deficit every year (Sigh). Then note that Bush's main motivation for the Tax cuts lies in the fact that the goverment has a large surplus and should give part of it back.

Tax Cuts to "Stimulate the Economy"
Shortly after his innauguration, with the "Bush recession" beginning, and the prospect of large surplusses dwindling, Bush insisted that we needed those same tax cuts to stave off the recession. Again, reported by CNN, Bush said:

"For several months, our economic growth has been in doubt and now it may be in danger," the president said. "A warning light is flashing on the dashboard of the economy, and we can't just drive on."

CNN's Ian Christopher McCaleb goes on to comment that: "The plan closely mirrors the cuts that Bush made the centerpiece of his presidential campaign, including reducing income-tax rates, easing the marriage penalty, phasing out the estate tax and boosting tax breaks for charitable contributions. "

So, let me get this straight--we need the tax cuts when times are good, AND we need the tax cuts when times are bad. They are "magic" tax cuts, apparently, that work for whatever economic state the country's is in.

Tax Cuts for the Post 9/11 Economy
After 9/11, Bush couldn't possibly advocate for these same tax cuts, in the face of an expensive war (or two) and a devestating economic downturn. Could he? You bet he could:

In his 2002 State of the Union, Bush prouldly trumpets the budget increases he's proposed while at the same time, lobbying for those SAME tax cuts:

" Our men and women in uniform deserve the best weapons, the best equipment and the best training and they also deserve another pay raise. My budget includes the largest increase in defense spending in two decades, because while the price of freedom and security is high, it is never too high. Whatever it costs to defend our country, we will pay. "

The next priority of my budget is to do everything possible to protect our citizens and strengthen our nation against the ongoing threat of another attack.

Time and distance from the events of September the 11th will not make us safer unless we act on its lessons. America is no longer protected by vast oceans. We are protected from attack only by vigorous action abroad and increased vigilance at home.

My budget nearly doubles funding for a sustained strategy of homeland security, focused on four key areas: bioterrorism; emergency response; airport and border security; and improved intelligence. "

After making such proud statements about his budget increases, he makes a call for making the tax cuts permanent:

Good jobs depend on sound tax policy. Last year, some in this hall thought my tax relief plan was too small, some thought it was too big. But when those checks arrived in the mail, most Americans thought tax relief was just about right. Congress listened to the people and responded by reducing tax rates, doubling the child credit and ending the death tax. For the sake of long-term growth, and to help Americans plan for the future, let's make these tax cuts permanent.

To sum up: These "magic" tax cuts are good for America during prosperous times, recessions, and times of war. The work equally well when you have a surplus, and when you are increasing the budget by record amounts.

The good news is--well, there really isn't any. Bush's bullheaded insistance on the SAME TAX CUTS, regardless of circumstances has left the United States in serious trouble--Running budget deficts of 35%-40% each year of his presidency, and leaving us $7.5 trillion in the hole. 9/11 and the economic problems and extra spending associated with it simply exaserbated the problem, and Bush made no adjustment to his already short sighted policy.

Way to not flip-flop George!

Sigh.

Tin Foil Out