WHAT'S $2 TRILLION BETWEEN DEMS AND THE GOP?
February 12, 2008
George Wallace famously announced that there wasn't a dime's worth of difference between the Republican and Democratic parties. But in the 2008 election, there's at least $2 trillion difference between them, says Grover G. Norquist, president of Americans for Tax Reform.
For starters, every single Democrat that entered the presidential primaries supported ending the Bush tax cuts in 2010:
- That means raising the capital gains tax to 20 percent from 15 percent and increasing the top marginal tax rate on income to 39.6 percent.
- In addition, increasing the death tax from zero in 2010 to 55 percent above $1 million and hiking the tax on dividends to 39.6 percent from 15 percent.
- Over a 10-year period, that would raise $2 trillion above the present projected tax burden.
- Conversely, every single Republican who ran for the nomination promised lower taxes.
- Rudy Giuliani proposed a tax cut worth more than $6 trillion over 10 years that cut the corporate tax rate to 25 percent from 35 percent.
- Mitt Romney wanted a top corporate rate of no more than 20 percent and would abolish taxation of all savings and investment for anyone earning less than $200,000.
- John McCain called for abolishing the alternative minimum tax, cutting the top corporate rate to 25 percent and allowing all business investment to be expensed in the first year.
- Mike Huckabee wants to abolish the income tax and replace it with the "Fair Tax" (the retail sales tax).
There is a bright line between the two parties on taxes, says Norquist. No, not a dime's worth of difference, but between McCain and Hillary or Obama 10 trillion dimes' worth of difference -- in lower personal-income taxes, lower corporate-income taxes, full business expensing, larger IRAs and 401(k)s, an end to the AMT and lower taxes on dividends.
Source: Grover G. Norquist, "What's $2 Trillion Between Dems And The GOP?" Investor's Business Daily, February 8, 2008.
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