Chafee: Let Bush tax cuts expire

August 25, 2010

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WPRI.com Blogs
By, Ted Nesi

One thing's for sure - Lincoln Chafee is not running for governor as a tax-cutter.

The latest evidence comes in a Huffington Post interview Tuesday, in which Chafee says he thinks the tax cuts signed into law by President Bush in 2001 and 2003 should be allowed to expire for everyone - including families making under $250,000 a year.

That position puts Chafee, who voted against the tax cuts as a Republican senator, at odds with President Obama and most Democrats (let alone Republicans who want to extend the cuts for everyone) - although not Alan Greenspan, as the piece notes. Here's Chafee:

    "I don't see how anyone could make the argument" that tax cuts for the wealthy will spur economic growth, Chafee said. "Just look at the evidence. When [the tax rates] were put in place in the 90s the economy prospered. When the tax was repealed under Bush, the economy crashed... I know it would be difficult to do, but the evidence would suggest that the wealthy can pay and the economy did rebound when Clinton put that tax policy in place in 1993. It cost him both houses of Congress but the evidence is that [the] economy will benefit."

    Asked specifically if Congress should let the entire package of Bush tax cuts expire, including for those making under $250,000, Chafee tried to draw from the pragmatism he saw in Clinton's approach.

    "Yeah," he said. "The tax cuts expire and they have been a failure. What could be more of a failure than what we have with our economy right now?"

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Linc Chafee is a tested leader of unquestioned integrity and a strong independent voice. As Governor, he will work hard to create new jobs, rebuild our economy, solve our chronic budget problems, end corruption, and forge a new way forward for Rhode Island.