GOP Focus on Suburbs

Congress extended the tax cuts to 2010, in one of their best moves this session. The measure was passed with virtually no Democrat support. WSJ:

If ever there was a market test of economic policy, the last three years have been it. The stock market has recovered from its implosion in Bill Clinton's last year in office, unemployment is down to 4.7%, and growth has averaged 3.9% in the three years since those tax cuts passed--well above the post-World War II average and more than twice the growth rate in Euroland.

Of course Democrats are engaged in the same old class warfare rhetoric to hide the fact that their idea of "fiscal conservatism" is always to raise taxes to balance the budget, never to cut spending, and conveniently forgetting that only those who actually pay taxes can get cuts:

As for whether the tax cuts favor "the rich," this deserves longer treatment on another day. For now, suffice it to say that one reason tax revenues are rushing into the Treasury at a record pace is because the rich are paying them. The tax payments of the wealthiest 3% of Americans increased at twice the rate of the tax payments by everyone else from 2001-2004. And those richest 3% now pay nearly as much income taxes as the other 97% combined. While the incomes of the rich have risen, the lower 2003 tax rates are still soaking them for the government's benefit.

Over the past 40 years, the U.S. has had three great experiments in tax-cutting, and each one has worked even better than advertised: The Kennedy tax cuts of the 1960s, the Reagan cuts of 1981, and now the Bush tax cuts of 2003. The political tragedy is that the first of those two were bipartisan, while the Bush tax cuts have had little Democratic support. Only 15 House Democrats supported their extension this week; there were only three in the Senate.

Perhaps they should recall the words of a famous Democrat from another era: "The tax on capital gains directly affects investment decisions, the mobility and flow of risk capital . . . the ease or difficulty experienced by new ventures in obtaining capital, and thereby the strength and potential for growth in the economy." That was John F. Kennedy, and he's still right today.

And in tandem with tax cuts, Republicans unveiled their suburban strategy. Congressman Mark Kirk (R-IL), of the north suburban 10th district is the leader of the 50 member bipartisan suburban caucus. Tribune story here.

Predictably local Democrats blasted the plan, suggesting a one-size-fits-all approach. Their concern is laughable--when have Democrats ever thought there was too much bureaucracy?! That kind of approach is a core Democrat principle--BIG government knows best, whereas the Republican approach empowers individuals and families. Kirk in the Deerfield Review:

Kirk said the Suburban Caucus has introduced seven bills that will be considered over the next couple months.

The proposals include requiring federal criminal background checks of teachers and coaches to help prevent the hiring of intrastate sex predators; establishing a 401 Kids Savings Accounts to help parents save for their child's college education; cracking down on suburban gangs; and creating tax easements for the charitable donations of open space.

Other proposals relating to improving health care coverage and environmental protection will be presented in the coming months, he said.

"American families are focused on keeping their kids safe, securing a strong financial future, preserving the natural beauty of their community and ensuring health-care coverage," he said. "Our suburban agenda addresses these critical issues."

I believe coming up is a bill to expand Health Savings accounts and allow portability, which is much needed, giving individuals more control over their health care choices.

Democrats carp, but offer nothing new.