Wampum

George W. Bush to Raise Taxes

President George W. Bush plans to raise taxes this year, at least by his definitions. Or perhaps he is just playing Calvinball, you decide.

In his January 20 State of the Union Address, Mr. Bush said:

We must continue to pursue an aggressive, pro-growth economic agenda. Congress has some unfinished business on the issue of taxes. The tax reductions you passed are set to expire. Unless you act … the unfair tax on marriage will go back up. Unless you act, millions of families will be charged $300 more in federal taxes for every child. Unless you act, small businesses will pay higher taxes. Unless you act, the death tax will eventually come back to life. Unless you act, Americans face a tax increase. What Congress has given, the Congress should not take away. For the sake of job growth, the tax cuts you passed should be permanent.

Thus, for Mr. Bush, the failure to extend tax breaks is raising taxes. Fair enough.

Today’s New York Times reports on Mr. Bush’s efforts to control the deficit. Among his proposals we find the following:

Mr. Bush will oppose extending a temporary tax break that greatly accelerates the rate at which businesses can depreciate new equipment. The tax provision was enacted in 2002 to stimulate the economy and manufacturers want to retain it.

Now, by the logic Mr. Bush used in the State of the Union, the failure to extend the depreciation tax break is a tax increase. So Mr. Bush is really just another tax raiser unless….

Yes, I am so sorry. Before I wrote this post I should have consulted the Offical Calvinball Rule Book more carefully. Right there in paragraph 37(a) (ii) is the relevant provision:

Failure to extend tax breaks constitutes a tax increase only when advocated by Democrats. If Republicans do not extend tax breaks it is not raising taxes. It is making the tough decisions needed to fight the deficit.

Never mind.

Posted by Dwight Meredith at January 31, 2004 03:02 PM | TrackBack