Boehner: DEMOCRATS' TAX RHETORIC DOESN'T MATCH REALITY

Via the WMD Mailbag:

When House Republicans approved a tax conference agreement this week that will help keep the Bush Economic Boom going and prevent the Democrats' massive tax increase, Rep. Nancy Pelosi (D-San Francisco) pulled out her talking points from 2003. She told AP that the bill would "cut taxes for the superrich" and "increase our debt."

Unfortunately for the Democrats', this class-warfare rhetoric isn't just stale -- it's completely bankrupt. An article in the May 10th issue of the Wall Street Journal ("Revenue Revelation," p. A18) pointed out that:

... the real news is how well these lower rates have been soaking the rich to fill government coffers.

The latest evidence is Treasury's monthly budget report for May that tax receipts were up by $137 billion, or a remarkable 11.2%, for the first seven months of Fiscal 2006 through April. That's more than triple the inflation rate. And it comes on top of the $274 billion, or 14.6%, increase in federal revenues for all of Fiscal 2005, which ended last September 30.

Wait a second. Who exactly is paying these record levels of revenue? The WSJ elaborates today ("The Tax Cut Record," p. A18):

...one reason tax revenues are rushing into the Treasury at a record pace is because the rich are paying them. The tax payments of the wealthiest 3% of Americans increased at twice the rate of the tax payments by everyone else from 2001-2004. And those richest 3% now pay nearly as much income taxes as the other 97% combined. While the incomes of the rich have risen, the lower 2003 tax rates are still soaking them for the government's benefit.

There's further evidence that the Democrat line about the tax bill only benefiting "the rich" is weak. Another WSJ article ("Tax Bill Curbs Favorable Rate For Teen Income," p. D1) points out that some rules are actually being tightened for "the rich":

The tax bill expected to sail through Congress this week will bring higher costs to wealthy parents who stash stocks and bonds in their teenagers' accounts to take advantage of a child's lower tax rate.

Such financial maneuvers have been a popular loophole used mainly by high-income individuals to avoid taxes on investment income. While the tax bill doesn't remove the loophole, it tightens it significantly.

An article in Business First points out two of the ways the tax conference agreement will help working families and small businesses:

Income limits -- at $62,550 for married couples and $42,500 for others -- were set to keep the alternative minimum tax, or AMT, from creeping further into the middle class, said Rep. Thomas Reynolds, R-Clarence. ...

The tax-relief package allows small businesses to continue to expense up to $100,000 of investments in depreciable assets until 2009. Without action, the write-off amount would have reverted to $25,000 this year, Reynolds said.

Pelosi also said the tax cuts would "do little for Americans struggling under skyrocketing gas prices" - an ironic comment considering Democrats have repeatedly voted against responsible energy legislation that would increase America's energy supplies and lower costs for consumers.

In fact, Democrats can't seem to back up any of their rhetoric with action. While they suddenly become concerned about fiscal discipline when tax cuts come up, Democrats didn't have a problem voting against comprehensive reforms aimed at changing the way Congress spends taxpayer dollars, reducing the number of earmarks, and promoting greater fiscal responsibility. Their answer is as old as their rhetoric: massive tax hikes.

That's the difference between Republicans and Democrats: the Democrat agenda of crippling tax hikes would kill job creation and discourage business investment. The Republican agenda includes pro-growth policies that continue to foster sustained economic growth, and are helping drive down the deficit.