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"Stimulus-Package Talk Contains Myths"
USA Today, January 14, 2003, 13A.

By Terry Paulson, PhD

Bring on the battle--It's the Republicans' Trickle-Down Economics vs. the Democrats' Spigot-Down Economics. To fight the Bush plan, the Democrats have brushed off their class warfare talking points. They want to keep taking from the "rich," wealth-producing, risk-taking Americans and turn on the government spigot with one-year rebates to the non-producers who vote to keep them in office. Their stimulus package wants more money for the states but no tax relief for the Americans paying the bills. I've had enough of their economic myths:

1. The rich do not always get richer. In sustained economic downturns, many "rich" go bankrupt taking their businesses and the jobs they created with them.

2. Any across-the-board tax relief plan will always benefit the rich more, because the top 25% of the income producers pay 83% of the income taxes. After Bush's tax plan is fully implemented they will pay an even a higher percentage of the tax load than they do now. If you're making more than $50,000 a year, the Democrats think you are rich enough to deserve no tax relief.

3. Most Americans want a job that lasts, not a handout. When was the last time you were hired by a non-producing poor person trying to leverage a $600 one-year rebate check?

4. Kennedy and Reagan proved that tax cuts are not a cost; they are an investment. Cuts stimulate business activity that creates economic growth, new jobs, and increased tax revenue. With Republicans keeping government spending in check, the deficits will decrease as the economy strengthens.

Bring on the Bush plan now, and if you want the tax rebates of the rich, try paying their taxes!

—Terry Paulson, PhD

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