There is much discussion, and much misinformation, about whether or not the Jobs and Growth Tax Relief Reconciliation Act of 2003, more commonly known as the “Bush Tax Cut” should be extended. My Ol’ Daddy always said, “Don’t take down a fence until you know why it was built in the first place.” Well, the Jobs and Growth Tax Relief Reconciliation Act of 2003 was enacted by Congress to stimulate a slow economy. And by my conservative views…it worked!
By reducing the tax rate, the so-called rich (also known as employers) were able to keep more of the money they earned, and make the investments necessary to stimulate the sagging economy. And as a consequence, the U. S. Treasury received more in taxes than at any time in the prior 20 years!
Not hard to figure. The more profit, the more investment, and the more dollars with which to pay taxes. By 2004, the Gross Domestic Product growth rate had increased eight fold! The richest 5% went from paying 44% of all income taxes in 1990 to paying 60% in 2005.
By 2007, the top 50% of wage earners paid 97.11% of all income taxes, and the bottom 50% paid 2.89% (source: IRS). So the more of their earnings the wealthiest among us are permitted to keep, the more jobs they create, and the more taxes the government receives with which to pay Social Security, Medicare, Medicaid, and other entitlements. You don’t need to have conservative views to understand the math.
Isn’t that what we all want? Well, maybe not. There are those, in and out of Washington, who say the rich are still not paying their “fair share.” Saul Alinski, a radical insurrectionist, and one of President Obama’s mentors, wrote in his book, Rules for Radicals, the following:
“If they could get the middle class, along with the poor, to envy the rich, they could control the largest voting bloc and seize all the power they’d need.”
With the mid-term elections approaching, is that really what it’s all about? Creating class envy and seizing “all the power they need”? History has demonstrated that the Bush Tax Cut, currently the law of the land, has fulfilled its intended purpose. To use a Democratic ploy, just think how bad things would have been without it!
So if the primary objective today is to stimulate the economy and thereby create jobs, it takes no genius so realize that raising taxes by failing to extend the Bush Tax Cut is precisely the wrong way to go in this period of serious economic recession.
To use another Democratic expression, is a vote to eliminate the current Bush Tax Cut just another vote to “create or save”… political power?
With the mid-term elections fast approaching, it is time for those of us that hold to commonsense conservative views to get involved as the founding fathers intended. Simply put…..vote.