themadsaxer (themadsaxer) wrote in buzzincousins,
themadsaxer
themadsaxer
buzzincousins

Dooh Nibor

Bush has extended tax discounts to the ultra-rich (15% on capital gains... compare that to your own paycheck), and rescued some upper-middle class wage-earners (in the $100K/year range) from the alternate minimum tax. The reason: to appeal to his base and his party's donors. His rationale: to keep the cost of capital low, for expansion of businesses. The rationale is bogus.
In the context of a "robust economy", where the average income has fallen over $1000 while energy and housing costs have skyrocketed by any historical standard, I ask: Where will the demand come from? When the government gives money to the rich, they can invest in businesses, sure. Consumer demand, except for perhaps polo ponies, remains stagnant.
The cost of so-called entitlement programs, long the scourge of hardline conservatives, is too often associated with pure cost. This is so, even though we learned the cost of foreign aid to poor countries somehow makes a bee-line to our economy. Same happens when the poor get help and the middle class gets a break. They buy stuff they've needed a while. All ships rise.
I'm not saying Bush is stupid for doing this. It's a very savvy move. I say the GOP sheep who are buying his rationale are either A) getting something or B) asleep at the wheel.
BONUS: Investment tip for the 15%-capital-gains-tax-rate takers. Stick with government contracters. The deficit-spending runaway train is not about to derail.
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