GOP Says Tax Cuts Will Happen Despite Katrina

The Republican leadership in Congress has delivered each and every tax cut demand made by President George “Nero” Bush. The tab for the war in Iraq could be anywhere between $200 billion and half a trillion dollars by now, and it’s rising. Meanwhile, about $51.8 billion is needed to start cleaning up after Hurricane Katrina, and that’s likely to rise to the $100 billion mark before all the bodies are buried. Yet, news from Capitol Hill is that more tax cuts are on the way. One wonders at what point such fiscal irresponsibility becomes treason.

Before New Orleans died, the spending and taxing plans of the Bush administration and the GOP Congress were to cut spending by $35 billion with a September 16 deadline on how to do it. And $70 billion in tax cuts are set for a vote before the month is out (meaning the deficit will rise some more). Fiscal expansion at a time when the Fed is engaged in monetary tightening is counterproductive at best.

The Democratic opposition (a term used most loosely) suggested that the hurricane and the loss of a major American city might change the plans a wee bit. The party leaders in Congress sent their GOP counterparts a letter earlier this week which read in part, “Now is not the time to cut services for our most vulnerable, cut taxes for our most fortunate and add $35 billion to the deficit.” The letter added that the plans “would likely cut programs that many victims of Hurricane Katrina will be relying on” and the Dems suggested that the cuts be suspended "indefinitely."

New facts have not caused the Bush administration to change its mind ever, and the rubber stamp GOP Congress just keeps saying “stay the course.” Senate Budget Committee Chairman Judd Gregg (R-NH) said of the cuts hurting the victims, “nothing could be further from the truth.” He went so far as to say that the cuts would help the aid situation in the Gulf Coast. Apparently, if rich people outside the damaged region are given even greater tax breaks, according to his logic, they’ll have more money to donate to charity. Of course, they might also just put the money into gasoline futures and drive up the price in search of a profit.

Long ago, Vice President Dick Cheney said “Reagan proved deficits don't matter.” Mr. Reagan, of course, proved nothing of the sort. What he proved was that cutting taxes and boosting spending brought short-term gains and metastasized the deficit. Now, the party that stood for fiscal responsibility and sound governmental finance now stands for just the opposite. And the country is worse off for it.



© Copyright 2005 by The Kensington Review, J. Myhre, Editor. No part of this publication may be reproduced without written consent.
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