April 19, 2008
A New Day Dawning?

Continuing the MSM editorial broadside on the issue, the Washington Post lays into House Democrats today on the Colombia free-trade deal. The editorial board doesn't just oppose the Democrats' position, it decries the "intellectual poverty" of their stand.

The overwhelming majority of opining from the stalwarts of the Old Media in favor of the Columbia deal coupled with Charlie Gibson's question on capital gains taxes raises an interesting notion: will this be a year when Democratic candidates are truly expected to explain themselves on economically populist campaign proposals that aren't supported by, say, economics?

UPDATE: On a related note, the Seattle Times states its firm support for the South Korean trade deal currently on the table. The conclusion:

Washington's congressional delegation must be counted on to make this agreement a reality.

Given Congressional poor form on the broader issue of trade this year that doesn't seem terribly probable.

Posted by Eric Earling at April 19, 2008 10:38 AM | Email This
Comments
1. So Rip Van Winkle still works for the Washington Post.

After peacefully dreaming in a leftie-induced stupor in which the biggest enemy of the world is the US in general and GWB in particular, he woke up and took a look at Colombia and Venezuela. And at some point in his happy stupors his union-made blinders had rotted and fallen off, and he actually noticed that all the screeching about union deaths in Colombia was just a noise machine and the threat was insignificant.

Hey, WaPo, how about waking up the rest of your stupefied staff capable of full-horizon views?

Posted by: Insufficiently Sensitive on April 19, 2008 11:16 AM
2. Most surprisingly Eric, it's beginning to look like Democratic candidates may have to explain why virtually none of their policies have ever been successful. Something as relatively uncomplicated as building a few serviceable ferryboats seems to be beyond their capability.

They have however figured out how to release murderers and rapists into our midst to prey on innocent citizens. I guess Democrats do know how to do something.

At some point, and perhaps we've reached it, voters are going to tire of failed Democratic run institutions such as education that they claim fail not because of their incompetence, but because voters don't give them enough money.

Here's hoping the game is finally up.

Posted by: Bill Cruchon on April 19, 2008 11:34 AM
3. There are a few 'irregulars' in the Democratic Party as there are in the Republican Party and I'm sure Mrs Clinton will replace those folks and re-focus on situations such as this. Putting Nancy Pelosi at the head has been one of the worse moves in Democratic history and has only proven to have weakened our Congress and perpetuated a 'quagmire' situation. I'm sure there will be 'many' personnel changes under Mrs Clinton and discounting all of the current political stumping 'rants', when she is presented with 'actual/factual' data new focus and considerations will abound. Remember a candidate is never really 'in the KNOW' until they assume office. That is the time with 'intelligence' is presented to them and the 'unintelligent' is recognized. :)

Posted by: Duffman on April 19, 2008 12:51 PM
4. ...I'm sure Mrs Clinton will replace those folks and re-focus on situations such as this. Putting Nancy Pelosi at the head has been one of the worse moves in Democratic history...

Agreed that placing a partisan hack like the millionaire second-generation ward-heeler Pelosi in the Speaker's chair was full evidence of Democratic ranking of party before country.

But Mrs. Clinton, were she in power, may or may not want to engage the Democrat left as headed by Pelosi. And what powers does a President have to impose leaders on Congress?

Posted by: Insufficiently Sensitive on April 19, 2008 12:59 PM
5. Kudos to Charlie Gibson to debunking the MSM and the Democratic Party's myth about what taxes do for revenues. Also, acknowledged was Barry Obama's ineptitude in responding to Gibson about his tax plan in the debate. Basically, Gibson poured cold water on Obama's (as well as Hillary's plan to increase taxes on the wealthy).

For those on the left who have drunk too much kool-aid and been brainwashed, read the following carefully; In the highest tax brackets - Lower taxes increase revenues because of more job creation, while Higher taxes decrease revenues because of more forced job layoffs.

True, there are loopholes that can lessen the tax burden for the wealthier, but these loopholes are not reflected in the overall tax revenue figures that are borne out in the above paragraph. The tax breaks for the wealthy mantra is a tool used by the left to turn the incorrectly informed masses against conservatives and Republicans. If handled correctly, with the appropriate spending cuts, unlike Bush's deficit spending - it can decrease the size of Government, as is needed if this country ever wants to move in a positive direction. That is also something that Democrats and liberals do not want to see. These points will have to be restated repeatedly to make up for the lies perpetrated since the '60's about taxing the wealthy - if we really want to continue to prosper and get a more representative Government after November.

Posted by: KS on April 19, 2008 01:02 PM
6. Eric and KS on Capital Gains Tax:
Charles Gibson was incorrect in his statement. Capital Gains tax cuts do not add revenue over the long term. Instead it cuts revenue. The reason for the temporary spike in revenue is, like most tax cuts or tax deduction gimmics, this one spurs selling of some long term assets to capture the gain (i.e., ones that marginally benefit from the cut in capital gains tax). Over the long term however, the idea does not continue to bring in more revenue because once investors have adjusted their holdings to the new rate, they buy and sell at the same timing as before.

I would say what has been shown is that having a capital gains rate lower than the average overall rate of taxation (not marginal rate), does spur long term investment.

What I find most interesting is the lack of fire in Republicans these days to address the overall taxation structure. It seems all Republicans want to talk about is tax cut for the rich (e.g., tricke-down theories), yet they miss one of the biggest things Reagan did, which was simplify the tax code and reduce tax brackets. Where are the Steve Forbes or Jack Kemps calling for flat tax? You don't hear that any more. The more tax break here, more tax break there you have in the code, the more complex it makes it for businesses and individuals. A simple flat tax set at a rate that would match the current revenues, would free the country from the countless hours wasted on accountants, wasted on figuring out which investment/purchase is best depending on which tax breaks one could take, and wasted by individuals moving investments around to take advantage of the current year's latest tax gimmick.

None of the candidates, even the one I support, have address this issue. Only Mike Huckabee started to address the issue. If McCain wanted to break from Bush, this is one area where he could do it, but he has already stated his economic positions, which are four more years of Bush's failed economics.

Posted by: tc on April 20, 2008 10:02 AM
7. tc - you are not for any flat tax. It's not "progressive", and we have to "sock it to the rich".

Posted by: FreedomLover on April 20, 2008 10:09 AM
8. Kudos to the Seattle Times for calling out our Democrat delegations in the House and Senate. None of them have the intellectual clarity nor the moral courage to vote in favor of Columbian and Korean trade agreements. They place party loyalty above their duty to Washington State. Their sense of duty is misplaced. This is reason to replace them when their terms expire.

Posted by: Paddy on April 20, 2008 02:07 PM
9. Eric:

"Columbia deal" should be "Colombia deal."


(We're not talking about a trade pact with D.C., after all.)

Posted by: Cleve on April 20, 2008 02:37 PM
10. Both Obama and Clinton are just raring to go with massive new Tax hikes, and in a recession to boot!

Well folks, it ain't a goin to happen!

They will both drag each other through so much hell until neither of them will be elected.

Couldn't happen to a Bastion of BS nicer party

They want to Bilk you out of 2-3 trillion more $$$$$

It isn't going to happen!

:) But please continue to keep talking about how much your democrapic party wants to raise our frigging taxes!

Please talk about it from the highest peaks!

Especially during an oncoming recession!

It will absolutely seal your fate!

Posted by: GS on April 20, 2008 07:44 PM
11. The Columbia trade deal is election year politics at best. Bush wants the bill fast tracked but fails to work with Dem's to make sure of this. Dem's don't go along with trade deal because Bush did not work with them. Dem's make up excuses as to why they don't want it to pass (cuase blaming Bush doesn't work as well as it used to). Both teams play politics with the bill. Columbia eventually get's it's free trade deal in October rather than in April.

Posted by: Cato on April 21, 2008 09:16 AM
12. FreedomLover@7:
Actually, a flat tax would be perfectly fine provided it was revenue neutral and Congress and the president left it alone. The fact of the matter is, the rich currently only pay, on average, a little more than the middle class. The reason for this is a lot of their income is not generated from salary, but from investments, which are taxed at the capital gains tax. So, while one may think the current tax bracket system is progressive, it in fact is not. It hits the upper middle class (who I define as those making between 100-250 K for individuals and 150-300K (or so) for couples).

A Flat tax that excludes individuals below $15K or families below $30K (plus or minus 5-10K) at a rate between 15-20, with no other deductions, loopholes, or exemptions, would most likely come out the same.

The problem with the current tax code, outside of its complexity, is the fact that every time one turns around this special interest group or that special interest group is getting special treatment. One of the biggest ways to reduce lobbyist influence, in addition to open government laws, would be to eliminate areas where they feel a need to lobby. The tax code is a big area.

Posted by: tc on April 21, 2008 11:42 AM
13. A flat rate tax sounds good to me. It's the first step towards eliminating income taxes entirely and thus reducing government power.

And anytime government power is reduced, it's a good thing!

Posted by: Politically Incorrect on April 21, 2008 11:47 AM
14. I'd only agree to a flat tax if there are no exceptions - and this goes all the way down to people who only make a dollar in income. Everyone must pay the same percentage no matter what the annual incom.

If you don't do this, you generate a class of people who can be targeted by politicians who want your vote (i.e. we will provide a new gov't service for you but since you're not paying taxes, it will be financed by everyone else!). Once a politician can get votes in this manner, then they have no incentive to provide opportunities to get you to move up and out of that class.


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