Monday, December 12, 2005

Tax Cuts, Even Temporary, Are Always a Good Idea

Remember when the Bush administration provided tax relief to tens of millions of Americans during the first administration, but to get the bill passed they agreed to make some of the tax cuts temporary? They caught some heat for that, but I think it is always better from a political view (though not from an economic one) to pass temporary cuts for one reason - you can vote again and again on the cuts.

Dems who may have voted for the cuts the first time are forced to vote again, but in an even bigger pickle are Dems who voted against the cuts. Now that Americans are benefiting from the dividend and capital gains cuts, and now that millions have opened 529s, they are aware of the benefits of these cuts and have no interest in having the government take their money away in the future. So let's vote every year on the cuts and see how those votes carry through to election day. Let's see more headlines like this from the WSJ: Democrats Face Tax Dilemma.