Lincoln Chafee Calls For Bush Tax Cuts To Expire
August 25, 2010
(Full text pasted below. Click here for original article.)Huffington Post
By, Sam Stein
Former Sen. Lincoln Chafee (I-R.I.) said on Tuesday that history has vindicated his opposition to the Bush tax cuts and that by the end of the year Congress should let those tax cuts expire both for the wealthy and all Americans.
In an interview with the Huffington Post, the Republican turned Independent politician -- now running for governor of Rhode Island -- scoffed at the arguments made by his former colleagues who are trying to keep the tax rates at their current reduced levels.
"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 When the tax was repealed under Bush, the economy crashed...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 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?"
Among those debating the efficacy of the Bush tax cuts, Chafee occupies a unique place. He was one of only two Republicans to oppose the first package considered in 2001. It was, at the time, a lonely perch inside the GOP tent. Bush had run his campaign on a promise to provide fiscal relief from the top earners on down. Senator Jim Jeffords, then caucusing with Republicans, joined Chafee in opposing the tax cuts on the grounds that they were irresponsible. Once the size of the package was reduced in conference committee, however, the Vermonter switched his tune. Sen. John McCain (R-Ariz.) would ultimately side with Chafee against the package, but as Chafee recalls it, "McCain's vote came out no where."
The final vote, ultimately, was a loss for the Senator but not a complete setback. While the Bush administration got the tax cuts into law they were forced to sunset the package after ten years, both for budgetary and political purposes.
"I'm sure that the Bush people, when they agreed to the sunset or pushed
for the sunsets, and they did indeed, thought they wouldn't expire,"
said Chafee. "And you heard the refrain make the cuts permanent. They
didn't waste any time with that refrain, they assumed they would be able
to do that."
They weren't. The sunset provision expires this December. And it seems likely that a portion of the package will not be renewed. Republicans are arguing that across-the-board rates need to be kept low. Democrats have responded, by and large, by championing legislation that would return them to previous levels only for those making over $250,000.
Few have espoused Chafee's theory that the country would benefit from a complete reversion -- though former Fed chair Alan Greenspan is one -- which may explain why he no longer associates with the major political parties. But his point, he stresses, comes with historical validation.
"It was tough times in 1993 when Clinton put them in. Those were tough times. 'It's the economy stupid,' was the campaign theme. And they worked they got us out of deficits," he said. "I hate to be simplistic but that is where I am.""
Click here for original article.
They weren't. The sunset provision expires this December. And it seems likely that a portion of the package will not be renewed. Republicans are arguing that across-the-board rates need to be kept low. Democrats have responded, by and large, by championing legislation that would return them to previous levels only for those making over $250,000.
Few have espoused Chafee's theory that the country would benefit from a complete reversion -- though former Fed chair Alan Greenspan is one -- which may explain why he no longer associates with the major political parties. But his point, he stresses, comes with historical validation.
"It was tough times in 1993 when Clinton put them in. Those were tough times. 'It's the economy stupid,' was the campaign theme. And they worked they got us out of deficits," he said. "I hate to be simplistic but that is where I am.""
Click here for original article.
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.
United Food and Commercial Workers Local 328
United Nurses & Allied Professionals (UNAP)
Service Employees International Union (SEIU) State Committee
