President Bush has shelved plans to propose actual policy on tax reform. Bloomberg reports:
President George W. Bush will delay a major push for revamping the tax code because administration officials concluded the changes are too tough to sell to the public and lawmakers, two people familiar with the matter said.
Instead, the administration will attack their political opponents on the issue. Dan Bartlett offered a preview this morning on Good Morning America:
The last thing we need do when people are trying to pay for higher heating bills or trying to make ends meet, paying for health care, the last thing we need to do is sock them with another — with a tax increase…The last thing they need is for Washington politicians to not find other ways to cut spending but to send them the tab. We’re not going to do that. It is bad economic policy.
Of course, the bulk of President Bush’s tax cuts haven’t benefited people struggling to pay heating bills or health care costs. In 2004, for example, households in the middle 20% of the income spectrum received an average tax cut of $647, while households earning $1 million or more received an average tax cut of $123,592.
Thus, it’s possible to rollback Bush’s tax cuts for the very wealthy, provide tax cuts for those struggling to make ends meet and reduce the deficit. American Progress has a detailed tax plan that makes it happen.