Kerry's Economc Policy - Think Tank Blasts John Kerry's Economic Plan By Bobby
Eberle Talon News /// April 20, 2004
A conservative think tank report concludes
that the economic plan proposed by Democratic presidential candidate John Kerry
(D-MA) would result in a slower economy and job creation significantly below potential."
The report adds that "the negative effects of an increase in taxes for high-income
taxpayers overwhelm the positive effects of making key elements of the Bush tax
plan permanent for taxpayers with incomes under $200,000."
The report by
William W. Beach of the Heritage Foundation shows that economic growth recedes
under the Kerry plan. "The annual rate of non-farm employment growth will be consistently
below-forecast each quarter for the 10 years following January of 2005," Beach
says in his report. "By 2006 there will be 225,000 fewer jobs created per year
due to the Kerry tax plan than in the baseline scenario, and by 2013 there will
be 404,000 fewer jobs created per quarter. The unemploymentrate also is consistently
higher than in the baseline scenario through the forecast period."
Beach
also states that GDP growth will slow if Kerry's plan were to be enacted. "The
nation's output of goods and services quickly drops below currentforecasts, and
growth remains slower throughout the next 10 years," Beach says. "Gross Domestic
Product, after adjustments for inflation, drops anaverage of nearly $20 billion
below baseline for each of the first five years and $30 billion below baseline
for each of the last five years."
According to the report, after-tax income
would shrink under the Kerry plan,and savings would "plummet." "Income after taxes,
or inflation-adjusted disposable personal income, is below baseline in each year
of the forecast," Beach says. "It begins $43 billion lower than baseline in 2005
and continues to drop to $240 billion below forecast in 2014."
The author
adds, "Lower disposable personal income means lower personalsavings. The personal
savings rate averages 17 percent less during the first year of the Kerry plan
(2005) and is 43 percent below baseline by 2014. By 2014, personal savings are
$193 billion below baseline."
Beach admits that certain elements of Kerry's
economic plan are as yet unannounced, but he concludes that the Democrat's plan
would lead to "a nettax increase of $609 billion over the ten-year period beginning
January 1, 2005."
"While these economic estimates are likely to change
as Senator Kerry announces more details about his tax plan, they strongly indicate
the weakness of his current approach," Beach concludes. "Raising taxes on high-income
taxpayers to cover budget shortfalls may make political sense, but it is not the
right move to encourage economic growth. Senator Kerry's new tax revenues divert
capital from better economic uses, which slows the growth in productivity that
usually stems from new investment. Job and income growth suffer as a consequence."
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Comments From
Our Visitors
TAXES ON WEALTHY/BUSINESS = TAXES ON ALL - Posted
Oct 07, 2004
PASS THE WORD. SINCE TO STAY IN BUSINESS, BUSINESSES MUST RECOVER
ALL COST AND EXPENSES THROUGH PRICING, KERRY/EDWARDS INCREASED TAXES ON THE "WEALTHY"
& BUSINESS = INCREASED TAXES ON ALL CONSUMER CITIZENS. THEY'RE ONLY FOOLING THE
IGNORANT.
JEFF - TWIN OAKS, MO
* * *
Something
to Think About
Every year an independent tax watchdog group
analyzes the average tax burden on Americans and then calculates "Tax Freedom
Day." This is the day after which the money you earn goes to you, not the government.
This year, tax freedom day was April 11. That's the earliest it has been since
1991. Its latest day ever was May 2, which occurred in 2000.
Recently,
John Kerry gave a speech in which he claimed Americans are actually paying more
taxes under Bush, despite the tax cuts. He gave no explanation and provided no
data for this claim.
Another interesting fact: Both George
Bush and John Kerry are wealthy men. Bush owns only one home, his ranch in Texas.
Kerry owns four mansions, all worth several million dollars. (His ski resort home
in Idaho is an old barn brought over from Europe in pieces. Not your average A-frame.)
Bush paid $250,000 in taxes this year; Kerry paid $90,000. Does that sound right?
The man who wants to raise your taxes obviously has figured out a way to avoid
paying his own.
E. King
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