The Dunce Ticket

Aside from rolling back the Bush tax cuts, Dean drops this pearl of fiscal wisdom

Howard Dean said on Friday that Alan Greenspan has become "too political" and should be replaced, criticising the chairman of the Federal Reserve for failing to stand up to the Bush administration tax cuts.

"I think Alan Greenspan has become too political," the Democratic presidential candidate said at a townhall meeting on Friday in New Hampshire, as he fought to recover his campaign's momentum.

"If he lacks the political courage to criticise the deficits, if he was foolish enough - and he's not a foolish man - to support the outrageous tax cuts that George Bush put through, then he has become too political and we need a new chairman of the Federal Reserve."

Yeah, that's the ticket, tank the stock market, that'll fix the greedy rich bastids.

It gets worse...Clark expounds:

Clark would pay for his Plan by hiking taxes 5% on the richest 0.1% - people making more than $1 million a year - creating a new 45% tax bracket.

"Twenty-five years ago, the wealthiest Americans paid a 70% tax rate. Today, they pay half of that," he said.

How the hell does a small business in California with 20 employees pay a tax increase, and pay an additional Workers Comp rate of $4000 per year, per employee? This bit of analysis from the Citizens For A Sound Economy:

In raising the top income tax rate to get more money from “the rich” Clark’s plan will also raise taxes on small businesses. This is because almost all small businesses pay taxes at the income tax rates, rather than the corporate tax rates. Small businesses also provide about 75 percent of the net new jobs added to the economy, they represent 99.7 percent of all employers, and employ over half of the private work force. By damaging the very engine of or economy, Clark’s plan will clearly mean fewer, rather than more jobs.

Studies from the National Bureau of Economic Research (NBER) confirms this. They find that tax rate cuts, not increases, lead to job growth. A 10 percent rate cut would increase the likelihood that a firm would hire new workers by 12 percent and the median wages paid by entrepreneurs would increase 3 to 4 percent. A tax hike would have the opposite effect.

Clearly, raising taxes on the 23 million individual-owned businesses in America is not going to create jobs, even with a temporary refund, in the form of a $5,000 subsidy.

Clark also believes that states should raise or create income and sales taxes:

Democratic presidential contender Wesley Clark said Saturday that one reason New Hampshire property taxes are high is the state has no income or general sales tax.

"Some of the responsibility for your high property taxes is a function of your state government and leadership in the state," Clark said in response to a question at a morning campaign stop.

Those of you blinded by the stars on Wes Clark's shoulders should carefully read his white papers, they reveal that Clark does not have the expertise to manage our economy.

The Clark Plan

The Homeland and Economic Security Fund:
$40 Billion Over Two Years.

Wes Clark proposes to create a Homeland and Economic Security Fund of $20 billion per year (or $40 billion total over the next two years). General Clark's Homeland and Economic Security Fund would take the crucial immediate steps that America needs to secure our homeland.

Tax Incentives for Job Creation:
$20 Billion Over Two Years.

Wes Clark proposes to provide $20 billion over the next two years in business tax incentives to create American jobs, including in the manufacturing sector.

State and Local Tax Rebate Fund:
$40 Billion Over Two Years.

Wes Clark proposes to create a State and Local Tax Rebate Fund of $20 billion per year (or $40 billion total over the next two years) to create jobs and lessen the need for states and local governments to raise taxes (including property taxes), raise state college tuition rates, raise other fees, and/or cut critical expenditures (e.g., in health care).

Doesn't this last item contradict his statement in New Hampshire? He also doesn't detail how he will offset/pay for these rebates in year three and four of his term, the effect on budget out-years, or how state and local governments will continue additional Homeland Security and social services after his plan sunsets the funding (remember Clinton's 100,00 cops funding debaucle?)

Send Clark back to K Street.

Posted by feste at January 23, 2004 11:22 AM | TrackBack