Mudcat Café message #1407653 The Mudcat Café TM
Thread #62901   Message #1407653
Posted By: Amos
12-Feb-05 - 07:07 PM
Thread Name: BS: Popular Views of the Bush Administration
Subject: RE: BS: Popular Views of the Bush Administration

Bush's Class-War Budget


By PAUL KRUGMAN

Published: February 11, 2005



It may sound shrill to describe President Bush as someone who takes food from the mouths of babes and gives the proceeds to his millionaire friends. Yet his latest budget proposal is top-down class warfare in action. And it offers the Democrats an opportunity, if they're willing to take it.


First, the facts: the budget proposal really does take food from the mouths of babes. One of the proposed spending cuts would make it harder for working families with children to receive food stamps, terminating aid for about 300,000 people. Another would deny child care assistance to about 300,000 children, again in low-income working families.

And the budget really does shower largesse on millionaires even as it punishes the needy. For example, the Center on Budget and Policy Priorities informs us that even as the administration demands spending cuts, it will proceed with the phaseout of two little-known tax provisions - originally put in place under the first President George Bush - that limit deductions and exemptions for high-income households.

More than half of the benefits from this backdoor tax cut would go to people with incomes of more than a million dollars; 97 percent would go to people with incomes exceeding $200,000.

It so happens that the number of taxpayers with more than $1 million in annual income is about the same as the number of people who would have their food stamps cut off under the Bush proposal. But it costs a lot more to give a millionaire a break than to put food on a low-income family's table: eliminating limits on deductions and exemptions would give taxpayers with incomes over $1 million an average tax cut of more than $19,000.

It's like that all the way through. On one side, the budget calls for program cuts that are small change compared with the budget deficit, yet will harm hundreds of thousands of the most vulnerable Americans. On the other side, it calls for making tax cuts for the wealthy permanent, and for new tax breaks for the affluent in the form of tax-sheltered accounts and more liberal rules for deductions.

The question is whether the relentless mean-spiritedness of this budget finally awakens the public to the true cost of Mr. Bush's tax policy.

Until now, the administration has been able to get away with the pretense that it can offset the revenue loss from tax cuts with benign spending restraint. That's because until now, "restraint" was an abstract concept, not tied to specific actions, making it seem as if spending cuts would hurt only a few special interest groups.

But here we are with the first demonstration of restraint in action, and look what's on the chopping block, selected for big cuts: the Centers for Disease Control and Prevention, health insurance for children and aid to law enforcement. (Yes, Mr. Bush proposes to cut farm subsidies, which are truly wasteful. Let's see how much political capital he spends on that proposal.) ...