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Republican E. R. Plan is unpatriotic

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Posted:
8 November 2001
 
-------- Original Message --------
Subject: Republican E. R. Plan is so bad it is unpatriotic (guru)..
Date: Thu, 25 Oct 2001 09:53:50 -0500
From: Roy Beavers <guru@emfguru.com>
Reply-To: roy@emfguru.com
Organization: EMF-L List
To: gephardt@mail.house.gov
 

..........From EMF-L (still resting).........

Hi folks:

I forward below a summary (from N.Y. Times) of the so-called "economic recovery" bill that the House passed late yesterday afternoon.  I watched much of the debate on C-Span.

Remember that your writer (that's me, the guru) ... is a genuine, long standing, tried and true, about 20 years of political battles and lobbying the halls of our government, also a "fat cat" contributor to many Republican candidates in the past ... Main Street Republican...... etc.......  etc.......

Still, I write that this bill is among the worst examples of "what America has become" (in a national system whereby the people are being ruled by an oligarchy that has control of the political process -- via $$$$$$$ campaign contributions)...........I write that this bill is the worst we have seen so far!!!

It is so bad that it amounts to being at least unpatriotic -- if not traitorous!!!

It is an undisguised and unapologetic attempt by the Republican controlled lower house of our congress ... to take advantage of the present "War against terrorism" national mood ... not so much to restore the nation's "hurting" economy ... as to further the bag of "goodies" George "Dubya" Bush owes to his BIG $$$$$$ campaign contributors ... in return for their having put him into the White House last November.  (Who are "they?"  See below.)

Some of you may respond, "Oh that's not so -- the bill is the work of the Republicans in Congress, not the President."

Don't you believe it.....!!

What we are seeing ... is the classic game of "good guy, bad guy" ... as it has been played in Washington countless times before in our history.

The President gets to act like "the good guy" while the Republican Congress does the dirty work and plays the part of the "bad guy."

In the end, they both expect to get most of what they want ... as the bill is further "massaged" in the Senate -- where just enough Democrats will succumb to the influence of the campaign $$$$$$$ system -- and the final product will once again reward the BIG $$$$$$ contributors (with hundreds of billion$$$$$ in tax breaks described below) and screw the public......

THE GREAT LIE that is buried within this piece of legislation is that the billion$$$ which go to the big corporations will "trickle down" to the general public in the form of jobs, etc....  And that the "small businessmen" (Main Street Republicans) also will thrive under the same tax breaks which go to the RICH BIG corporations......  Not so!!!  As has been proved time and time again in our recent past......!!!  (Since the Nixon years....)

That 'theory' is too complicated and the explanation too lengthy to deal with it here ... but that is the assumption which needs to be mightily challenged before this legislation is enacted into law.....

It has always looked good on paper ... and sounded good in political rhetoric, but it doesn't "wash" in the laundry.....  The gap between "rich" and "poor" in America just keeps expanding -- and that particular 'theory' is one of the major reasons!!!!!

Now that I have voiced my calm, dispassionate and unbiased opinion (as usual), I hope that you will send this message to your Congressman (or Congresswoman) and Senator ... and to as many of your friends as you dare (without losing their good opinion of you) ... also add your comments.

ASK THEM TO FORWARD THEIR THOUGHTS, ON TOP OF THIS MESSAGE, TO THEIR CONGRESSMAN.....  E-MAIL IS THE BEST CHOICE NOW!!!!.........

This message needs to be spread far and wide ... fast.......!!!

We need to STOMP OUT THIS VARMINT BEFORE IT TAKES ANOTHER BREATH.

Cheerio......

http://www.nytimes.com/2001/10/25/national/25STIM.html?todaysheadlines=&pagewanted=print
 

Roy Beavers (EMFguru)
roy@emfguru.com

It is better to light a single candle than to curse the darkness.....

The only thing necessary for the triumph of evil is for good men to do nothing.
........Edmund Burke (1729-1797)


The New York Times on the Web

October 25, 2001

THE ECONOMY

Divided House Approves Economic Recovery Plan

By RICHARD W. STEVENSON

WASHINGTON, Oct. 24 Saying business tax breaks are the best way to preserve jobs and revive the economy, Republicans muscled their version of an economic recovery plan through the House today, brushing aside criticism from Democrats that the bill did too little for the unemployed and other people who need help
the most.

The vote was 216 to 214. Seven Republicans voted against the bill. Three Democrats voted for it.

The narrow margin of victory reflected an intense, often bitter partisan debate on the House floor over how best to encourage recovery from a downturn that began a year ago and intensified after the terrorist attacks last month.

It also suggested that many of the House bill's provisions were likely to be stripped out or scaled back in the Senate, which is controlled by Democrats. Efforts to negotiate a compromise in the Senate have been faltering, all but ending hopes expressed by both sides of getting a bill signed into law quickly at a time when layoffs are mounting, corporate profits are withering and consumer and investor confidence is fragile.

The House legislation's centerpiece is a package of corporate tax cuts that would total more than $70 billion this year. The bill also includes $28 billion in tax cuts for individuals including one-time payments of $600 to couples and $300 to single people whose incomes were too low to receive rebate checks under the tax bill signed into law by President Bush this year and $12 billion to help states bolster programs for people who have lost jobs.

Under pressure from Democrats to explain their focus on companies rather than individuals, Republicans said that assisting corporations would help avert further layoffs and lay the groundwork for an economic rebound by encouraging companies to invest more in new equipment and factories.

"Something very important has gotten lost in the furious slinging of accusations over who benefits from the business components of this bill," said Representative Bill Thomas of California, the main author of the Republican plan. "And that is the plain fact that businesses are America's employers. They're the hardware store, the diner down the street, the gas station on the corner. They're not the enemy of working families."

Democrats said the Republican plan benefited big companies at the expense of working people and those who have lost jobs, and would do little to help the economy pull out of the economic downturn.

Most of the benefits of the business tax cuts would go not to small businesses but to a relative handful of big corporations, Democrats said. The tax cuts for individuals, they said, were skewed to middle- and upper- income people. And Democrats said the provisions in the bill to help states deal with surging unemployment were woefully inadequate.

"This bill is a giant tax giveaway to corporations and the wealthy," said Representative Richard A. Gephardt of Missouri, the Democratic leader in the House.

Democrats attacked a provision that would repeal the corporate alternative minimum tax, which was created in 1986 to make sure that companies could not escape paying income taxes through use of deductions. The bill would not only end the tax, but in effect allow companies to claim refunds of the tax back to 1986.

The repeal of the tax and the refunds would total $25.4 billion this year. According to the nonpartisan Congressional Research Service, seven corporations would receive $3.3 billion of the $25.4 billion. Among them are I.B.M., which could receive $1.4 billion, General Motors, which could receive $832 million, and General Electric, which could get $671 million.

The White House said it strongly supported the bill, and Mr. Bush reiterated his case today for an emphasis on tax cuts including repeal of the corporate minimum tax in assembling a recovery plan.

"Part of the war we fight is to make sure that our economy continues to grow," Mr. Bush said in a speech to employees of a printing company in Maryland.

But even as the House was debating the legislation, Treasury Secretary Paul H. O'Neill was huddled with lawmakers in the Capitol trying to revive bipartisan negotiations in the Senate that would almost certainly jettison a number of the provisions in the House bill.

Last week, Mr. O'Neill called the House bill "show business," saying it was in part an effort by Republicans to put themselves on record supporting measures that they knew were unlikely to make it into law.

In addition to repealing the corporate minimum tax, the House bill would encourage businesses to spend more money in new equipment, machinery and factories by creating a tax break for capital investment. The bill would allow companies to write off immediately 30 percent of the cost of any such investments for the next three years. It would total $39.3 billion this year.

The bill would also extend, to five years from two years, the period in which companies can offset tax bills from previous years with a portion of their current losses. The provision is valued at $4.7 billion this year.

The bill includes a provision supported by both parties to give rebates to about 34 million households that did not qualify for the first round of rebate checks sent over the summer. The checks went only to people who earned enough to pay federal income taxes. The new round of checks would total $13.7 billion.

The House plan would also accelerate the planned reduction in the 27 percent income tax rate, which is paid by single people starting at about $27,000 and by couples at about $45,000. Under the bill, the 27 percent rate would drop next year to 25 percent, four years ahead of schedule.

The House bill would reduce the top rate on long-term capital gains to 18 percent from 20 percent by eliminating the requirement that stocks and other assets be held for five years before qualifying for the 18 percent rate. Under current law, assets held at least one year but less than five years are taxed at the 20 percent rate; under the terms of the House bill, assets held for one year would qualify for the 18 percent rate.

Democrats said the legislation was a grab-bag of provisions sought by special interests and pushed by Republicans for years. They said it would do little to revive the economy in the short run, and would threaten fiscal health in the long run.

"This bill pretty much leaves laid- off workers and their families to fend for themselves," said Representative Martin Frost, Democrat of Texas.

Republicans defended their approach as balanced and prudent, saying Democrats were offering nothing but a discredited reliance on increased government spending to address the economy's ills.
 


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