red states rule
08-18-2007, 12:28 PM
This should help expand the US economy even more. More jobs, increased wages, and more economic growth
Of course, Dems are wetting their pants
Bush May Try to Cut Corporate Tax Rates
President Cites Need To Compete Globally
By Peter Baker
Washington Post Staff Writer
Thursday, August 9, 2007; Page A01
President Bush said yesterday that he is considering a fresh plan to cut tax rates for U.S. corporations to make them more competitive around the world, an initiative that could further inflame a battle with the Democratic Congress over spending and taxes and help define the remainder of his tenure.
Advisers presented Bush with a series of ideas to restructure corporate taxes, possibly eliminating narrowly targeted breaks to pay for a broader, across-the-board rate cut. In an interview with a small group of journalists afterward, Bush said he was "inclined" to send a corporate tax package to Congress, although he expressed uncertainty about its political viability.
The president's comments came as he tried to calm volatile stock and mortgage markets and reassure the country that the economy is fundamentally strong. Despite mounting concern over the downturn in the housing market, he dismissed proposals advanced by prominent Democrats to grant government-chartered Fannie Mae and Freddie Mac more freedom to buy mortgages and mortgage-backed securities. And he ruled out any taxpayer bailout of lenders threatened by the subprime home-loan crisis.
In a 48-minute conversation on an array of economic issues, Bush also warned China not to start a trade war, blamed Congress for not doing more to shore up infrastructure such as the bridge that collapsed in Minneapolis last week, and pushed back against Democratic presidential candidates who are promising to renegotiate the North American Free Trade Agreement.
The focus on economic issues on Bush's last day in Washington before leaving town today for most of the rest of the month reflected a White House strategy to confront Democrats on tax and spending issues. With most of his second-term domestic legislative agenda in tatters and his strategy in Iraq under bipartisan fire, Bush appears eager to return to familiar issues that animated the beginning of his presidency and might rally disaffected Republicans behind him again.
Appearing before cameras at the Treasury Department alongside his economic team, the president vowed to veto spending bills that exceed his targets, and he accused Democrats of plotting the largest tax increase in history to fund an additional $205 billion in discretionary spending over five years.
"Put another way, it's about $1,300 in higher spending every second of every minute of every hour of every day of every year for the next five years," he said. "Now, somebody is going to have to pay for it. And that, of course, will be the hardworking American people. . . . I will use the veto to keep your taxes low and to keep federal spending under control."
Democrats quickly returned fire, noting that Bush inherited a surplus that turned into a deficit and that he never vetoed a spending bill during the six years that Republicans controlled Capitol Hill, even as the budget grew by 50 percent.
"After six years of reckless spending in Washington, President Bush is the last person who should brag about fiscal responsibility," said House Speaker Nancy Pelosi (D-Calif.). She accused the president of misrepresenting Democratic spending plans, which she said come in lower than his and have received some Republican support. And she said Bush wants "to spend $2,800 each second . . . to keep our troops in the middle of a civil war in Iraq."
Bush did not mention his potential plan to cut corporate tax rates during his televised statement, but he discussed it in response to questions during the later session with reporters. The idea would again put him at odds with Democrats at a time when they are talking about letting his first-term tax cuts expire for the wealthiest Americans. Rather than just defending his past program, Bush seems interested in pushing the tax issue further to the fore.
Treasury Secretary Henry M. Paulson Jr. briefed Bush yesterday morning on various possibilities for overhauling a corporate tax structure that he considers disadvantageous for U.S. business. A paper Paulson released last month said the corporate tax rate could be reduced from 35 percent to 27 percent by scrapping the research-and-development tax credit, a deduction for domestic production, breaks for interest on state and local bonds, and other special tax breaks.
The administration said the U.S. corporate tax rate, once modest compared with international competitors, is now second only to Japan's among 30 member states in the Organization for Economic Cooperation and Development. Moreover, officials said, Germany, France, Japan, Britain and China have signaled that they will or may cut their rates.
"Our tax structure makes us less competitive, and if we want to be a competitive nation, we've got to analyze a lot of things, including taxes, dependence on oil or good education policy," Bush said. "And so we will work through possible suggestions for Congress."
http://www.washingtonpost.com/wp-dyn/content/article/2007/08/08/AR2007080802468.html?hpid=topnews
Of course, Dems are wetting their pants
Bush May Try to Cut Corporate Tax Rates
President Cites Need To Compete Globally
By Peter Baker
Washington Post Staff Writer
Thursday, August 9, 2007; Page A01
President Bush said yesterday that he is considering a fresh plan to cut tax rates for U.S. corporations to make them more competitive around the world, an initiative that could further inflame a battle with the Democratic Congress over spending and taxes and help define the remainder of his tenure.
Advisers presented Bush with a series of ideas to restructure corporate taxes, possibly eliminating narrowly targeted breaks to pay for a broader, across-the-board rate cut. In an interview with a small group of journalists afterward, Bush said he was "inclined" to send a corporate tax package to Congress, although he expressed uncertainty about its political viability.
The president's comments came as he tried to calm volatile stock and mortgage markets and reassure the country that the economy is fundamentally strong. Despite mounting concern over the downturn in the housing market, he dismissed proposals advanced by prominent Democrats to grant government-chartered Fannie Mae and Freddie Mac more freedom to buy mortgages and mortgage-backed securities. And he ruled out any taxpayer bailout of lenders threatened by the subprime home-loan crisis.
In a 48-minute conversation on an array of economic issues, Bush also warned China not to start a trade war, blamed Congress for not doing more to shore up infrastructure such as the bridge that collapsed in Minneapolis last week, and pushed back against Democratic presidential candidates who are promising to renegotiate the North American Free Trade Agreement.
The focus on economic issues on Bush's last day in Washington before leaving town today for most of the rest of the month reflected a White House strategy to confront Democrats on tax and spending issues. With most of his second-term domestic legislative agenda in tatters and his strategy in Iraq under bipartisan fire, Bush appears eager to return to familiar issues that animated the beginning of his presidency and might rally disaffected Republicans behind him again.
Appearing before cameras at the Treasury Department alongside his economic team, the president vowed to veto spending bills that exceed his targets, and he accused Democrats of plotting the largest tax increase in history to fund an additional $205 billion in discretionary spending over five years.
"Put another way, it's about $1,300 in higher spending every second of every minute of every hour of every day of every year for the next five years," he said. "Now, somebody is going to have to pay for it. And that, of course, will be the hardworking American people. . . . I will use the veto to keep your taxes low and to keep federal spending under control."
Democrats quickly returned fire, noting that Bush inherited a surplus that turned into a deficit and that he never vetoed a spending bill during the six years that Republicans controlled Capitol Hill, even as the budget grew by 50 percent.
"After six years of reckless spending in Washington, President Bush is the last person who should brag about fiscal responsibility," said House Speaker Nancy Pelosi (D-Calif.). She accused the president of misrepresenting Democratic spending plans, which she said come in lower than his and have received some Republican support. And she said Bush wants "to spend $2,800 each second . . . to keep our troops in the middle of a civil war in Iraq."
Bush did not mention his potential plan to cut corporate tax rates during his televised statement, but he discussed it in response to questions during the later session with reporters. The idea would again put him at odds with Democrats at a time when they are talking about letting his first-term tax cuts expire for the wealthiest Americans. Rather than just defending his past program, Bush seems interested in pushing the tax issue further to the fore.
Treasury Secretary Henry M. Paulson Jr. briefed Bush yesterday morning on various possibilities for overhauling a corporate tax structure that he considers disadvantageous for U.S. business. A paper Paulson released last month said the corporate tax rate could be reduced from 35 percent to 27 percent by scrapping the research-and-development tax credit, a deduction for domestic production, breaks for interest on state and local bonds, and other special tax breaks.
The administration said the U.S. corporate tax rate, once modest compared with international competitors, is now second only to Japan's among 30 member states in the Organization for Economic Cooperation and Development. Moreover, officials said, Germany, France, Japan, Britain and China have signaled that they will or may cut their rates.
"Our tax structure makes us less competitive, and if we want to be a competitive nation, we've got to analyze a lot of things, including taxes, dependence on oil or good education policy," Bush said. "And so we will work through possible suggestions for Congress."
http://www.washingtonpost.com/wp-dyn/content/article/2007/08/08/AR2007080802468.html?hpid=topnews