FR friend Joel Fox, the President of the Small Business Action Committee, guest writes today’s FR Commentary, with a critical eye on Phil Angelides tax ‘cut’ plan…
Let’s accept that Democratic gubernatorial candidate Phil Angelides really wants to cut taxes as he recently pronounced; that the proposal is not a cynical attempt to buy votes after years and years of promoting tax increases. The obvious question: Is the tax cut proposal offered by Angelides a plus for the taxpayers and businesses of California? The answer must be viewed from a wide angle considering not only the tax cut proposals but what other policies Angelides offers and supports that will affect the economy and the state budget.
The Democratic nominee’s new tax plan offers tax credits for some individuals and tax exemptions for smaller businesses. At the same time he continues to call for raising taxes on upper income taxpayers, those making $250,000 or more; and increasing tax revenue from corporations.
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October 12th, 2006 at 12:00 am
Nothing like an unbiased critique from a front group for the Governor’s campaign. I’m shocked, shocked that he’d disagree with a plan that would provide middle-income families with tax benefits.
I wonder, Joel, if you would have opposed Governors Wilson and Reagan when they too proposed a temporary tax increase on the wealthiest of the wealthiest Californians (who’ve done quite well by the Bush tax cuts)?
October 16th, 2006 at 12:00 am
Actually, Steve, the tax increase supported by Pete Wilson proves my point. After the tax increase, revenues to the state went flat. Projected to bring in $1.1 billion from upper-end income folks, the money never arrived and revenues remained flat until the tax increases were repealed. Take a look at Dan Weintraub’s June 1, 2005 weblog entry titled Projections for a good discussion on this. Pete Wilson later admitted his tax increase was a mistake.
As to Ronald Reagan, he also understood how tax increases could slow the economy. In fact, he began one of his radio commentaries after he left the governor’s office by saying he wanted to collect more taxes from the rich—and the best way to do that was to cut the tax rates. He used President Kennedy’s tax cuts as an example of how to accomplish that.