Friday, September 17, 2004

the John Kerry School of Economics

Class starts late when the teacher won't focus on curricula... "though the editorial itself implied a discussion of his economic policy, six out of the first seven paragraphs attacked the Bush administration for past economic circumstances."

Tom Nugest takes a bite out of John Kerry's WSJ economic prescription. My favorites...

Common sense and mathematical ability elude Kerry and trump his words:
“Under my plan,” Kerry wrote, “the tax cuts would be extended and made permanent for 98% of Americans.”

Question: I read in the Wall Street Journal that 50 percent of Americans don’t pay taxes. So how is Kerry going to cut taxes for 98 percent of Americans?
Here’s some more from Kerry: “My plan … to end every single incentive that encourages companies to outsource … would take the entire $12 billion we save from closing these loopholes each year and use it to cut corporate tax rates by 5%.”

Prediction: Corporations will find other loopholes. The loss of foreign sources of manufacturing will also undermine the ability of companies to keep inflation low in this country. By raising the cost of imports and the cost of manufacturing, prices will rise. (emphasis mine)
My only question about these multi-billion-dollar savings is who the "we" is. Was Kerry talking about "we" the State or was it "we" the Government? What our governing body, the political/institutional controlling entity brings in on tax revenues certainly doesn't count as a income for the State. So who is saving what?

Finisher - Cutting the deficit means attacking people like this:
I grew up in a lower-middle-class household. I studied hard and put myself through a good college. Ten years ago, I started my own company and for the past four years my income has exceeded $200,000 a year. Last year, I paid 40% of my income for self-employment, state and federal income taxes. From the remaining, I support five people, pay for health insurance and save for retirement. Teresa Kerry, with assets exceeding $500 million, pays less than 2% (includes her foundation income). Instead of raising the taxes on the person flying around the world on the Gulfstream G5, John Kerry wants to put a bigger tax burden on the one driving the ’97 Intrepid with more than 100,000 miles on it. While his rhetoric attacks the wealthy, his policies attack the middle class.
I'm not an economicist, would "hard-working Americans get the raw end of the deal through increased inflation, higher interest rates, and less free-choice"?

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