Tax cuts for everyone
There’s talk in Washington, D.C. about an economic stimulus package that would include a healthy round of tax rebates and cuts that Democrats are actually warm to. Of course, the Democrats would also load it up with increased entitlement spending, but the fact that they’re wrapping their arms around a potential tax cut, after demonizing the Bush tax cuts for seven years, it noteworthy.
“I really feel good that we have an opportunity to do something together,” Reid said, standing in the White House driveway with Pelosi after talking with Bush. Reid said the size of a deal suggested by Bush was “a good number.”
Administration officials are focusing on rebates of $800 to $1,600 for individuals and couples and so-called bonus depreciation to allow companies to deduct 50 percent of business investments made this year. Democrats say the package also should include boosts in unemployment benefits, food stamp payments and the Medicaid health care program for the poor and disabled. Talks between Pelosi and Minority Leader John Boehner, R-Ohio, have focused on smaller tax rebates of perhaps $500 for individuals.
If the Democrats were still the minority party in Congress, they wouldn’t be doing this. They would instead be ratcheting up their recession hopes and blaming President Bush for “the worst economy since Hoover.” But they are the majority party now, it is an election year, and the Democrats know they cannot escape blame if the economy does head south. For all their bashing of conservatives and conservatism, it is telling that when the chips are down, Democrats are prepared to turn to conservatism — in this case, tax cuts — to help stimulate the economy. They, too, know that conservatism works every time it’s tried.
Related post: The global market meltdown and the stimulus farce
