Don’t be deceived by the encouraging words of President
George W. Bush about his recently released economic growth package.
To say the plan is “a very fair plan” that will provide
“tax relief to working citizens … which creates more
jobs,” is overly optimistic and just plain ignorant.
The plan brings “trickle-down economics” from the
Reagan era to the forefront. Unfortunately, the Reagan era was an
economic goose egg and there’s little reason to believe the
logistics of economics have changed since 1985. Trickle-down
economic packages do not directly target problem areas like public
programs struggling to stay afloat or state programs in need. The
packages gives most of the money to corporations and private
citizens, hoping the money will eventually be used for consumption,
but immediately helping the rich.
The biggest part of Bush’s plan is eliminating federal
taxes on stock dividends that will cost the government $674 billion
dollars over the next 10 years. The president also decreased the
top tax rate by 3.6 percent while only decreasing the lower tax
brackets by 2 percent. An aid package and “reemployment
accounts” will give $6 billion to financially troubled state
governments but $6 billion is miniscule relative to the cost of
eliminating dividend taxes.
The Democrats have a plan of their own that would give more
money back to the states, which are cumulatively faced with a debt
of $67 billion. California alone is paralyzed by over half the $67
billion and could use more direct help from Bush. But for now it
looks like Bush, Inc. will reward the fat cats who got him elected
and hope the facade flies successfully ““ at least until he
gets through his 2004 reelection campaign.