July 13, 2006
To Maximize Revenues, GOP Will Eliminate Taxes Completely
"Some in Washington say we had to choose between cutting taxes and cutting the deficit," President Bush said in a brief appearance at the White House to highlight the new estimates. "Today's numbers show that that was a false choice. The economic growth fueled by tax relief has helped send our tax revenues soaring."The Republican leadership in Washington decided this week that, as a last-ditch effort to stop the deficit from spiralling out of control, it would eliminate taxes entirely.
"We've seen that tax revenues increase whenever we cut taxes," said Rep. James Sensenbrenner. "It only recently occurred to us that if we got rid of them altogether, we'd end up with a surplus."
House Republicans championed Sensennbrenner's realization. "He's brilliant," said Dennis Hastert. "He's as good at economics as he is at nuclear physics."
Professor Finn O'Gerlockheit of the Brookings Institution hailed the new House plan, which is expected to be passed this weekend, moved through the Senate, and made law by next Friday. "we need budget relief and we need it now."
Tax relief evangelist Grover Norquist was more sanguine, however. "I now understand that we'll hardly be able to drown government in the bathtub if we cut taxes. After the enormous flood of revenue that comes in, government will, sadly, be bigger than ever."
"It makes perfect sense," said Economics Professor Linda Blenner. "When we cut taxes for the rich, the money trickles down onto everyone else. Well, now the rich will be turning a firehose on America."
Republicans cautioned that when they speak of eliminating taxes entirely, they mean taxes for only those earning $100,000 or more. "We think it's fair that the people deriving the most benefit from the tax cuts -- wage earners -- help start the cascade that moves up the ladder and gradually right back down on them."
Posted by Tom Burka at 11:20 AM