On the Importance of Keeping Taxes Low and Certain

The rhetoric coming out of the White House the past couple of days regarding a possible economic stimulus package is truly baffling. Speaking to Union League Club of Chicago yesterday, referring to "mixed" economic indicators, Bush said: [M]ost importantly the smartest thing we can do is to keep taxes low....I've worked with Congress to cut taxes, and pro-growth economic policies work. I don't get it. It's important to keep taxes low to keep the economy moving so that when the economy slows down we can continue to keep taxes low to keep the economy moving? And certainly uncertain times call for certaintude. You see, in less than three years, the tax cuts that we passed are set to expire. That creates uncertainty. If you're an entrepreneur thinking about investing, and all of a sudden you're looking at a horizon where you taxes may be going up, it creates uncertainty. We don't need more uncertainty in an uncertain market. Exactly! What kind of a fool would sign a tax bill that expires in ten years and then spend the next six years promoting a termination of its expiration? Oh, wait...
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