Fed Chair Nominee Says The Way To Recover From Katrina Is Extending Tax Cuts
Fed Chair Nominee Says The Way To Recover From Katrina Is Extending Tax Cuts
There’s been considerable praise in the liberal blogosphere for Ben Bernanke, President Bush’s nominee to replace Alan Greenspan as chairman of the Federal Reserve. Is it warranted? This article from the 10/21 edition of Tax Notes isn’t encouraging:
Council of Economic Advisers Chair Ben Bernanke in October 20 remarks before the Joint Economic Committee said recently enacted pro-growth economic policies, including the 2001 and 2003 tax cuts, will help the nation withstand the effects of hurricanes Katrina and Rita.
[snip]
“These recent events make it all the more important that we keep the fundamentals of the national economy strong and continue to promote economic policies that will encourage growth and job creation,” Bernanke said.
Bernanke cited extension of the 2001 and 2003 tax cuts as one of the most important economic policies for Congress to act on…
This year, “people making at least $1 million a year will enjoy an average $103,000 tax break this year from the 2001 and 2003 tax cut bills. That’s nearly 140 times as large as the $742 tax cut the average middle-income household will receive.”
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So, we have a Finance wizard who says the way to end deficits is to give the already wealthy more money…
What school of economics did he graduate from, Voodoo U?
October 24th, 2005 at 4:47 pm“Well, I was for tax cuts before I was against it, you see”-
October 24th, 2005 at 4:52 pmYou wouldn’t expect Bush to nominate someone who was honest about tax policy would you? I’m sure the only tool in this guy’s drawer is “tax cuts for the rich”. A lot of good that does our economy when they are investing it in high gain foreign capital markets.
October 24th, 2005 at 4:57 pmReaganomics full steam ahead. The main issue though, is he a good conservative born-again christeen man? If so, he’ll be good to the sole like Ralph, “Church Boy” Reed, right?
October 24th, 2005 at 4:58 pmMore supply-side nonsense.
It will cost America BILLIONS of dollars to recover from Katrina. Giving the wealthiest additional wartime tax cuts will only shift the burden to the middle class (again) and further dampen consumer sentiment.
Instead, Bush should rescind their tax cuts so we have the money to pay for this. Of course, he will never do that, because it would total abandonment by the billionaire coalition.
Too bad he under-financed the levees in the first place, or we wouldn’t such a huge mess right now.
October 24th, 2005 at 5:01 pmThe Bernanke story is a feel good piece put out there by the White House to deflect all the bad news that is coming up. Bush needed to start the week trying to get an upper hand on the news stories. It won’t last long, and all the news people heaping praise on Bernanke might want to step back a little and let it go for now.
October 24th, 2005 at 5:01 pmThe trickle is turning into a mist and evaporating.
October 24th, 2005 at 5:01 pmOr to put it another way,
Trickle-on economics has turned into a gushing stream of wiz,. I knew these neocon deviants were into water sports.
“Heh, heh, heh”
October 24th, 2005 at 5:03 pm-Jon Stewart
That settles it, the man’s an idiot. Tax cuts do NOT increase economic output – especially in a relatively low corporate tax environment of the united states. The number of companies that pay zero or nearly zero percent in taxes is insulting to the hard working americans who have the bear the brunt of taxes.
The only thing that trickles down is the burden!
October 24th, 2005 at 5:10 pmOne should consider the quiet effort underway to remove the ability of millions of middle-class tax payers to write off mortgage interest as a deduction. This amounts to a tax increase for the middle class at the hands of our friends in the Republican Party who staunchly oppose any kind of tax increase….for the rich.
Such a move to gauge the American Middle Class in order to pay for the bumbled policies of the Bush Administration would be catastrophic.
God help us.
October 24th, 2005 at 5:10 pm“These recent events make it all the more important that we keep the fundamentals of the national economy strong and continue to promote economic policies that will keep the rich rich , and the poor poor,” Bernanke said. “Shit, did you SEE some of those Katrina victims? I don’t want to EVER end up like them sum bitches,” he added.
October 24th, 2005 at 5:13 pmI was initially thinking that Bernanke might not be so bad, but hearing this has caused me to do a 180.
October 24th, 2005 at 5:19 pmAnyone who believes that tax cuts for the wealthy are good for the economy is a lunatic.
Ryan is right. Corporate taxes have been reduced enormously at the expense of the middle income guy.
Corporate profits do not equal jobs, nor balanced budgets — they only equal corporate profits.
Trickle down economics are more like piss on the middle guy.
Is Bush an agent for a foreign country? His decisions are bankrupting our country both economically and morally. He’s a disgrace to Texas, the USA, and the world. Bring back blowjobs.
October 24th, 2005 at 5:26 pmThis is a completely ridiculous stance and he knows it. I’m not rich, but anytime I get extra money I put it to work for me — making more money. That’s what the rich people do, they don’t go out and spend any more than they already do, and THAT’S WHY THEY ARE RICH. They just think we don’t know that. And maybe we don’t.
October 24th, 2005 at 5:35 pmI was wondering when I first heard the name Bernanke if the guy was a trickle down idiot or now. Now I know. He is a right wing neocon nut.
The USofA is in hock deficit wise and is constantly
borrowing from China to the tune of 1 billion per day and the total is about 26K for every man, woman and child in Amurka.
Now this idiot thinks the way to correct this is to keep the 100K tax cuts per year for the rich, and the measley 500 for the working man.
Yeah, the man is into water sports all right and it is called PISS ON YOU.
October 24th, 2005 at 5:48 pmWhat a freaking idiot.
October 24th, 2005 at 5:52 pmI like the tax cuts. You liberals should all just file the short form on your taxes. Don’t claim any deductions. This may help you in overcomming your guilt.
October 24th, 2005 at 6:10 pmAP,
Actually I’ve benefitted tremendously from the tax cuts, but the majority of americans have received little or no benefits. Just because you’re personally stupid and greedy, don’t place your own ‘guilt’ on others for that shortcoming. The nation crumbles at your feet, and you’re happy for a tax cut – immoral selfish idiot!
October 24th, 2005 at 6:38 pmexcuse me…i don’t claim to know much about economics, so help me out here… for the “average” citizen, even above average, aren’t those tax cuts eaten up by the high prices and higher state and local taxes that have come about because of lower federal revenue due to “tax cuts”? huh??? except the VERY wealthy, of course….
October 24th, 2005 at 6:59 pmKaty- exactly. In Maine, any federal tax cuts have been swallowed up by our property taxes which are trying to make up for the widening gap due to lower “contributions” at the federal level. There is no way for the middle class to ever get ahead given that no matter how hard we paddle, we’re getting “trickled down” on at a horrifying rate.
October 24th, 2005 at 7:42 pmPerhaps Bernake might want to read:
“New Orleans Pays the Death Tax.”
October 24th, 2005 at 8:43 pmSuch a fine site should resist the standard journalistic trick of trying to use the largest number possible, even if it involves dividing apples by oranges. I don’t think anyone is advocating a $103,000 tax cut for the average family, given that that would amount to a huge amount of welfare. So, of course someone making $1 million a year is going to get a tax cut equal to some multiple of that received by the average family. Without normalizing for that (I’ll admit that there may be disagreement about the best way to do that), your “140 times” number is meaningless.
Suppose, for example, that someone making $1 million paid 200 times the taxes that an average family paid — if passing a tax cut, wouldn’t a 140x cut reasonably be considered small?
October 24th, 2005 at 9:03 pmGood morning everyone!!!
They are going to take away from the Middle Class, Students, and poor and give it to the rich. Another rich CORRUPT REPUBLICAN. What do you expect!!!
Old Bushie had three failed businesses and now he is trying to bankrupt our country.
October 25th, 2005 at 8:13 amRyan,
I made no claims except that “140 times” was not meaningful without context.
October 25th, 2005 at 8:36 am>>
October 25th, 2005 at 9:34 amRyan, In a previous post the other day you stated that raising taxes on the rich created the three biggest booms in the economy or something to that effect. Cutting taxes had an effect on the two largest crashes. Since this is so central to the arguments between liberals and conservatives – Can you back that up with a solid cause/effect? I’m really interested in this as our Republican congressmen is moderate in everyway, but as every conservative, he has a dogged faith in trickle-down. Can anyone cite the evidence?
October 25th, 2005 at 9:35 amFolks – this is one of the most important educational issues that needs to be taken up by the left as quickly as possible. A question directed particularly to Ryan, who claimed that tax cuts led to the two most recent crashes, as well as tax hikes leading to booms, – Can we back that up? Can someone point me to the evidence? We need this information and we need to spread it now before the middle class disappears!
October 25th, 2005 at 12:20 pm#1- VooDoo U! Funny Stuff, it’s hard to believe I’ve found a leftie with a sense of humor. Most are a little on the “stick-up-the-butt” side but I won’t mention Ryan’s name.
October 31st, 2005 at 12:03 pm#28 Tom- Good question! 3 economists in a room will give you 7 answers to that one.