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Friday, August 31, 2007
David Limbaugh :: Townhall.com Columnist
Bush Tax Cuts Must Be Extended
by David Limbaugh
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Will the Dems' health care Christmas Present to America be an improvement or detriment to our health care system?


Students of the Reagan era know the Democrats' contention that the rich got richer and the poor got poorer during that period is pure rubbish. Income increased for all income groups in the Eighties.

Surprise, surprise. The same is proving true for the Bush cuts. Mounting evidence contradicts the Democrats' shameless efforts to downplay the Bush economy by claiming the gap between the "haves" and "have nots" is growing.

Heritage's Rea. S. Hederman Jr. notes that the U.S. Census Bureau's annual report shows that in 2006, the growing economy increased the median family income and lowered the poverty rate, and income inequality did not statistically increase. This is without even factoring in tax transfer payments from upper to lower income groups.

Hederman concludes, "The Census report refutes the notion that 'the rich are getting richer and the poor are getting poorer.' Instead, all quintiles are growing wealthier with more money income."

Democrats will not be deterred by these reports and, like their colleague John Edwards, will cite Census data that there are 36.5 million poor Americans who "do not have enough money for the food, shelter and clothing they need." But here again, closer inspection paints a different picture.

Heritage's Robert Rector documents that "if poverty means (as Edwards claims) a lack of nutritious food, adequate warm housing and clothing, then very few of the 36.5 million people identified as 'poor' by Census are, in fact, poor."

If all else fails, Democrats can always fall back on the supposedly 47 million uninsured Americans to confirm their gloomy picture of America and usher in a socialistic solution. Sorry, but these numbers are grossly distorted, too, as the Investors Business Daily editors cogently illustrated in their Wednesday editorial, "The '47 Million Uninsured' Myth."

It's past time to extend the Bush tax cuts.

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About The Author
David Limbaugh, brother of radio talk-show host Rush Limbaugh, is an expert in law and politics and author of Bankrupt: The Intellectual and Moral Bankruptcy of Today's Democratic Party.
 
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Thank you Moonbat Exterminator
Nice to see some cool headed facts. Robert and those who jump in the puddle with him wear out my scroll key.

WTF
To a large extent, the economy has a lot in common with psychology. Behavioral psychologists observe that when an activity is rewarded it becomes more common and when punished less frequent. In the arena of economic behavior, taxation is a form of punishment. Any activity that is taxed will vary with the rate of taxation. The degree of variance depends on the nature of the activity, but the effect is ubiquitous. The problem with the liberal "revenues only vary with rates" position is that it is based on the assumption that the economy is a static entity, which is just wrong. In reality, the economy is a dynamic system that grows, contracts, and changes constantly. The one distinguishing factor to a dynamic system is a tendency to seek equilibrium. When an activity within the system is inhibited(taxation in economics), the forces that caused that activity do not disappear, they seek another outlet for their expression. This is why every attempt to artifcially manipulate market forces has failed abismally.
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