PAY ATTENTION, KARL…. Over the last couple of days, President Obama has been critical of those who offer nothing but tax cuts to address “every problem we face.” On Fox News, Karl Rove, after defending his old boss’ economic record with a straight face, responded, “No one, that I know of, is talking about tax cuts only.”
Rove said this on Friday. On Thursday, just one day prior, 90% of the Senate Republican caucus voted for an alternative to the stimulus plan. It contained — you guessed it — tax cuts only.
* Permanently repeal the alternative minimum tax once and for all;
* Permanently keep the capital gains and dividends taxes at 15 percent;
* Permanently kill the Death Tax for estates under $5 million, and cut the tax rate to 15 percent for those above;
* Permanently extend the $1,000-per-child tax credit;
* Permanently repeal the marriage tax penalty;
* Permanently simplify itemized deductions to include only home mortgage interest and charitable contributions.
* Lower top marginal income rates from 35 percent to 25 percent.
* Simplify the tax code to include only two other brackets, 15 and 10 percent.
* Lower corporate tax rate as well, from 35 percent to 25 percent.
All told, Matt Corley notes, the Republican alternative would have cost over $3 trillion over the next decade, without investing a single dollar in economic stimulus. Despite being, in the words of Paul Krugman, “completely crazy,” this measure drew the support of 36 out of 40 Senate Republicans.
“No one, that I know of, is talking about tax cuts only”? Rove really should pay more attention.