Friday, April 25, 2008
Wall Street Journal editorial, McCain and Taxes:
John McCain, the Republican nominee for President, has proposed extending the Bush tax cuts. So as morning follows night this week, Democratic news analysis has been pouring forth to proclaim that his tax ideas are a threat to the republic because they'll explode the budget deficit. The Senator needs to understand that he can't win this election by playing on this economic turf.
The subtext of the criticism of the McCain tax plan is that it would somehow "starve" the government of revenue. ...
If all the tax cuts expire, however, we would see the largest tax increase in U.S. history and that percentage of national income going to the Treasury would climb steeply higher. In which economics text is it written that the cure for a slowing economy is an unprecedented tax increase? ...
The past week's criticisms are intended to bait Mr. McCain into debating his tax cuts on these liberal terms. He can only win this debate, and the election, by breaking free of that mindset and making his own personal case for lower taxes and the prosperity they help to create.
Update: For a contrary view, see Citizens for Tax Justice: McCain's Transformation Complete: Tax Cuts for the Rich, Even if We Cannot Pay for Them.