Tax Increase

investmenttool.com Opinion

Senator's Kennedy played point man last week in an attempt to repeal the Bush tax cuts, passed last year and set to phase in for another nine years. It may make political sense to the Democrats, but it doesn't make sense out here in Illinois. The proposal makes no economic sense at all.

Senator Kennedy seems to think there is not enough money to pay for $350 Billion in spending priorities. The top things mentioned by the Liberal from Massachusetts are prescription drugs and education. He throws in the war on terror in a piteous attempt to curry favor with the patriotic crowd.

Senator Kennedy wishes to freeze the Bush tax increases on certain upper income taxpayers. One thing I've noticed is that when taxes go up, they hit me hard and when they say they are aiming at the rich, they always seem to hit me. I think Senator Kennedy and the Senate leadership he's fronting for should let me keep more of my money.

Well here in Illinois, we are spending our tax cuts on important things like mortgage payments and reducing our debt loads. We're also buying cars and other important consumer goods, trying to help the economy.

Which leads us to our final point. The economy is in recession. There is no clear evidence that the recession has ended. The economic signs are hopeful but far from definitive. The last politician to propose tax increases in the middle of an economic downturn was named Herbert Hoover. We got great results out of that administration didn't we.

Though it pains me as a Democrat I have to give the economic edge to the Bush response. When the Democrats decided it was necessary to close a projected $50 Billion deficit with tax increases, Mr. Bush noted this: When we passed the tax cut we understood that if there were war or recession there might be a few years of deficits. Well, we have a recession and a war.

Enough said.

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Shmuel Protter
investmenttool.com

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