So what did President Bush have to say about taxes in his State of the Union speech? The following is an excerpt from the President’s speech:
To build a prosperous future, we must trust people with their own money and empower them to grow our economy. As we meet tonight, our economy is undergoing a period of uncertainty. America’s added jobs for a record 52 straight months.
But jobs are now growing at a slower pace. Wages are up, but so are prices for food and gas. Exports are rising, but the housing market has declined.
At kitchen tables across our country, there is a concern about our economic future. In the long run, Americans can be confident about our economic growth, but in the short run, we can all see that that growth is slowing.
So, last week, my administration reached agreement with Speaker Pelosi and Republican Leader Boehner on a robust growth package that includes tax relief for individuals and families and incentives for business investment.
The temptation will be to load up the bill. That would delay it or derail it, and neither option is acceptable.
This is a good agreement that will keep our economy growing and our people working. And this Congress must pass it as soon as possible.
We have other work to do on taxes. Unless Congress acts, most of the tax relief we’ve delivered over the past seven years will be taken away.
Some in Washington argue that letting tax relief expire is not a tax increase.
Try explaining that to 116 million American taxpayers who will see their taxes rise by an average of $1,800. Others have said they would personally be happy to pay higher taxes. I welcome their enthusiasm. I am pleased to report that the IRS accepts both checks and money orders.
Most Americans think their taxes are high enough. With all the other pressures on their finances, American families should not have to worry about the federal government taking a bigger bite out of their paychecks. There is only one way to eliminate this uncertainty: Make the tax relief permanent.
Members of the Congress should know, if any bill — raises taxes reach — reaches my desk, I will veto it.
What do you think? Are the rebates enough to get the economy going? Is now the time to make the tax cuts permanent? Do you think the speech will affect either the way that Congress or the American public responds to the current economic situation?
I think the question should be “Are rebates going to help the economy or hurt it?” The rebates represent a huge increase in government spending, which will increase the deficit. It sends a message to everyone who receives the rebate: “Don’t worry, the government will take care of you.”
Tax cuts, on the other hand, stimulate the economy by giving people more incentive to earn money (note ‘earn’, as opposed to ‘get a handout from the government’). When you get to keep more of what you earn, you are likely to work harder, and increased productivity is what stimulates the economy, not free money.