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Bling-Bling without the Cha-Chingby Erika D. White
Let's review the facts. The budget surplus that was existence when Bush took office is gone and is now a enormous deficit. Hundreds of thousands of Americans have been laid off in the past 24 months, and we are at war or declaring war on too many countries at one time. The centerpiece of the proposed plan will be the complete elimination of federal income taxes on stock dividends in which dividends are now taxed at a higher rate than profits from stock sales. This will undoubtbly benefit a small percentage of wealthy Americans, but do virtually nothing for the average working American. In fact, critics of the White House plan said that it would spawn the largest annual U.S. budget deficit in history and threaten to boost interest rates as government borrowing needs rise. It is also estimated that Bush's proposal to eliminate taxes on stock dividends could cost states several billion dollars because of the effect on state taxes. Vice President Cheney has been toting that the proposal will increase capital formation, encourage investor spending, promote small business growth, increase confidence in the stock market, and give much needed help to unemployed Americans. That's great, but this plan comes with extreme repercussions that may be felt for generations to come. This is a quote directly from ABC News: "[I]n sheer dollar terms, it would easily eclipse the $290 billion record set in 1992, the last year of George H.W. Bush's administration. It also would be a steep fall from the record $236 billion surplus of 2000." That means that the rich will pay less while other Americans will continually pay more. Our federal deficit and national debt will continue to grow to the point of financial disaster. I will not deceive anyone by not telling you the plan has some attractive qualities. The plan calls for the elimination of double taxation on corporate dividends.This is likely to cost as much as $300 billion over 10 years, according to administration sources. Some economists say it could boost stock prices by 10 percent. The problem is that Bush is trying to put a band-aid on a gaping wound. What will be the result in the long run? Will he need another plan after this one also to keep repairing the band-aid in place? Or will the wound be left gaping open? I personally hope a tax plan is approved, but one that is as beneficial as it is now, as in the future economic growth of our country. With the labor department reporting that 101,000 jobs were lost in December and unemployment is holding steady at 6 percent, I hope something is done soon! There is a Fact File available at the following website, http://www.msnbc.com/news/856590.asp?0dm=O19UO, called "Will you benefit from the plan?" Take some time out and see how the proposal would affect seven hypothetical households; I'm sure one will represent you. Fraternally,
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First, let me clarify, bling-bling refers to the almighty Benjamin's, Dead Presidents, Cheddar, or plainly said…the almighty dollar!! Cha-ching refers to the sound the bling-bling should make when it hits your pockets. But if you are like many Americans, your dollars aren't making much noise at all. In fact, it is safe to say they are lifeless and waiting for the...BUSH ECONOMIC PLAN to help them sit up and say Daddy! I hope then that you are a wealthy taxpayer…
