Consistent with my belief that Republicans can’t stand political prosperity, we read this morning that certain Republican Senators “offered a budget for 2006 that would undue more than a fourth of the cuts that Mr. Bush has requested.” Concerned with the deficit, the Senators want to scale back. How about, instead, they read up on supply-side theory?
If they structure these tax cuts properly they will generate revenue increases, but if they scale them back enough to remove meaningful production incentives, they may not spur growth at all. That’s why it’s not so simple to talk about compromise when you’re talking about tax cuts. I was concerned at the time President Bush proposed his tax cuts that they would not go far enough because they were way too modest, especially in comparison with President Kennedy’s in the ’60s and President Reagan’s in the ’80s. I still believe the growth would have been much more robust from President Bush’s tax cuts had they not been so modest. All he essentially did was roll back Clinton’s tax hikes. With Republican friends like these President Bush doesn’t need enemies.