Value Judgment: Bush Proposes New "Screw You!" Tax Idea

Value Judgment is a daily weblog written by two independent voters on the eastern seaboard of the United States. VJ will focus on the 2004 U.S. Presidential campaigns, including strategy, tactics, and substance. The authors supported Howard Dean in the Democratic primary. Accordingly, his activities will be a prominent topic on this site.

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November 18, 2004

Bush Proposes New "Screw You!" Tax Idea

Where are the Democrats? The Bushies are now proposing to eliminate the tax deduction for business's employer-provided health insurance costs. And they want to eliminate the deduction for state income tax. Umm, to the first: Are they insane? (Well, yes.) To the second, isn't that the evil boogeyman known as double taxation?

This could be just a feint to get some other egregious stuff in the bill passed. But, as usual I have to ask: Where are the Democrats? Where? Hello? Crickets?? Chirp chirp.. I'm waaaaaiting.

Bah.

Posted by J at November 18, 2004 08:39 AM

Comments

Steve Gilliard comments on this as well. He is right that the nascent Bush plan to eliminate deductions for state and local taxes is even more outrageous than the plan to eliminate business tax deductions for employer-provided health insurance.

Everyone is freaking out over the plan to elminate the deduction for health care, but that isn't the real kicker. It is the elimination of the state and local tax deduction which will blow the plan up. That's far more important than health insurance and in an immediate way. In New York, that deduction saves thousands a year, directly. Now, that's not a big deal in Texas, but if they want the GOP not to die in the Northeast, well, they might want to reconsider that.

When the news of this reaches New York's papers, the screaming will be as if someone jammed a poker up someone's ass. Unpopular wouldn't be the word. The old age lobby will scream about the health insurance plans, because that would affect pensions as well, that could easily die in committee. But the state and local tax plan will make people go nuts. Because that will be seen in people's wallets immediately. Mind-bogglingly stupid isn't the word for this.

This is an idea that will immediately impact nearly all tax payers in a clear and substantial way. It's one of the biggest political blunders I could imagine the Republicans making. Which is why I don't think they are really serious about it. These people may be insane, but they aren't stupid. They have to know that any suggestion to eliminate state and local tax deductions will be met with fierce opposition, and not just from Democrats. So why would they even float this idea?

Why, to draw the fire away from the plan to eliminate the deduction for employer-provided health insurance of course.

It's an old trick that writers in the TV industry learned a long time ago: If you want to get something risqué past the censors, mask it behind something really offensive. The theory being that the censors will stomp on the really bad thing but leave alone the thing that you wanted all along.

The Republicans can propose both of these measures, give ground on the state and local tax proposal, get what they wanted all along and then publicly pat themselves on the back for being bi-partisan in their approach to tax reform.

Posted by: Chris Andersen at November 18, 2004 12:39 PM

Right. As I said, it could be a feint. Although I'm not sure that the state/local thing is a feint to get the health insurance thing through. What I'm wondering is if both are a feint for something else not being discussed in the papers yet. But, I've got no time to go digging, alas...

Posted by: J at November 18, 2004 12:52 PM