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Art Small on Tax Reform


Eliminate Bush tax cuts and tax breaks for special interests

Art Small will work to create a fair tax system that creates opportunities for ordinary Americans: Repeal the Bush-Grassley tax cuts on incomes above $200,000. Create a Get Started in Life Deduction:Allow every young person to deduct fully the first $80,000 they earn through work if used toward a college education, the purchase of a first home, or the care of children. Eliminate all special tax breaks used by corporations and the wealthy to shield income from taxation.
Source: Campaign website, artsmallforsenate.com Jul 20, 2004

Tax cuts drove up other government expenses

Source: Speech Written for Democratic District Conventions Apr 24, 2004

Bush tax cuts mostly benefited the wealthy

The Bush tax cuts made the heirs to Wal-Mart happy. They got $986 million on April 15. The top 1% of taxpayers got 50% of the cuts in the Bush plan. An average of $98,000. The rest of us? About $400 bucks. But Social Security went up. State taxes went up. Health care went up. That is not compassionate conservatism. And who pushed that plan through the Senate? Charles Grassley!
Source: Speech Written for Democratic District Conventions Apr 24, 2004

Tax cuts have short-term benefit and long-term costs

President Bush stated that the economic growth the nation has experienced in recent months is a direct result of the tax cuts he advocated and Congress approved. To a large extent, that is true. The tax rebates stimulated increased consumer spending and caused economic activity. Any reasonable observer also would have to acknowledge that increased federal government spending, both domestic and military, also contributed significantly. Finally, the low-interest policy promoted aggressively by the Federal Reserve played an important part. These three stimulants are classic Keynesian economic tools.

The important question that is yet to be played out is: "At what price?" America now faces stupendous deficits we count in the trillions. Those debts will have to be paid off. To pay them off, future spending will have to be curtailed, and there will be pressure on interest rates to rise. This, too, is Economics 101. In short, we will do well for a while, then the piper will have to be paid.

Source: Letter to the Editor, Des Moines Register Jan 21, 2004

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