Bob's Links and Rants

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Wednesday, December 25, 2002

Republican Logic:
See if you can follow the logic behind a proposal to cut taxes on dividends:
Republicans close to the White House said there were several reasons why officials were attracted to the idea of letting taxpayers exclude about half of all dividend income from taxes. Eliminating all taxes on corporate dividends would drain so much money from the Treasury about $300 billion over 10 years, according to some estimates that President Bush would have no room for other tax cuts. Reducing dividend taxes by about half, to about 20 percent for people in the top tax bracket, would not only reduce the drain on revenue to the Treasury but also bring dividend taxes in line with those on capital gains. (NY Times)

It's sort of like a doctor explaining to you why he is amputating your left arm by saying "if I amputated both arms, you would be in really bad shape." That is, they are comparing their stupid idea to an even stupider idea, rather than to the already stupid enough status quo. Another comparison, which I'm surprised Bush hasn't used already: "We have to attack Iraq because if we attacked Atlanta I would probably lose votes."

You know, you Republican corporate drones, you could also bring dividend taxes in line with those on capital gains by raising both to 90%, which would mean that those who make money by having money would have to pay more taxes than those who make money by working.