Democrats & Liberals Archives

It's the Economy, Stupid!

While Bush continues to take credit for a growing economy, seems that only his boardroom buddies are feeling the improvement.

Meanwhile, the majority of the country continues to wait for this recovery that’s yet to appear across the heartland, as today’s Consumer confidence numbers suggest.

The Conference Board, a business research group, said its index of consumer confidence sank to 98.2 from a reading of 105.7 in July. Economists surveyed by had forecast that the index would slip, but just a bit to 103.4. The August reading was the lowest since May and showed the biggest drop since February.

With jobs growth falling way below estimates in recent months and U.S. Census stats showing that poverty is on the rise in this nation, things don't look very optimistic for those not earning six-figure salaries.

And Bush seems intent on further shifting the balance of wealth in this nation towards the few. In recent weeks, his comments have demonstrated just how well he looks out for the rich -- at the expense of the vast majority of Americans. He has suggested that looking into replacing income tax with a national sales tax might be a good thing.

While in Florida a couple weeks ago, Bush stated "You know, I'm not exactly sure how big the national sales tax is going to have to be, but it's the kind of interesting idea that we ought to explore seriously."

And the GOP has been exploring it. In fact a bill (H.R. 25) has already been introduced in Conress by John Linder (R-GA), which includes a 23% sales tax.

But even the way they state the tax rate in the bill is deceptive. Their "23%" is of the total price paid, not tacked onto the product's base price.
The way the rest of us calculate tax, that'd be 30%. And are we going to pay 30% for everything? How about a 30% tax on that house. Or an extra 30% on all your groceries.

The result of such a plan would be that a family of 4 earning $35,000 and spending all of it in order to put a roof over their head and food on the table would be paying about 1/3 of their income as tax (assuming some credit card debt, as well). Meanwhile, the doctor making $200,000 and living on $75,000 would be paying about 11% of his income in tax.

And such a system makes things like deductions for mortgage interest, child credits, educational expenses, etc. impossible what with the getting rid of the IRS and all.

I'm not sure what's going on out in all those red states. There are just too many people working so hard to get by that still support Bush and the GOP's attempt to loot their wallets.

But why? What is the likelihood of Topeka or Huntsville being struck by terrorists? And yet those voters are placing the war on terror above their day to day economic survival? Either their priorities are irrational, or they are oblivious to the lack of "fair and balanced" coverage on FoxNews, or I'm really missing something...

Posted by blipsman at August 31, 2004 5:19 PM