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July 23, 2004 You have to read Kerry very carefully While perusing a Business Week interview with John Kerry, I was a bit amazed by the man's audacity when answering a question about marginal tax rates: BW: So you believe that just by rolling back tax cuts for top-end taxpayers, you can fund a health plan and deficit reduction? Parsing time: "I like low marginal rates. I fought to get low marginal rates. I voted for going down to the 28% and 14% brackets [in 1986]". So in 1986, per Kerry these rates were more than enough. Inference ... we should have low marginal rates like the 28% and 14% I voted for. Remember, he likes low marginal rates. He's a low marginal rate kinda guy. OK. Moving along: "I am not going to raise marginal rates --- ever ...". Sounds pretty definitive doesn't it? "not going to raise marginal rates" Never, ever. No way, no how! Caveat time: "... above the rates we had under Bill Clinton." Oh. So then, Mr. Kerry, you are going to raise marginal rates. History time. Remember, in 1990, Bush, under pressure from a Democratic Congress, raised the top rate from 28 percent to 31 percent. In 1993, Clinton created two new upper brackets, one at 36 percent, and the other at 39.6 percent. Guess who voted in favor of both? So while he voted for the 28% and 14% in '86 he also voted to raise the marginal rate in '90 and '93. Somehow that didn't make it into his answer. The marginal rates when Bush took office? 15, 28, 31, 36, and 39.6 And since the tax cuts? 10, 15, 25, and 33 Notice that reduction in the marginal rate in each of the brackets (with one bracket being combined). So Kerry is telling a big fat one, folks. He's either "not going to raise marginal rates --- ever ...", or he's going to raise marginal rates back up to where they were under Clinton. Obviously the latter is the plan despite his claim he's not raising them. And that doesn't just mean the top marginal rate either. He means all of them (although he knows it would be political suicide right now to actually admit that openly). Remember he's just said that marginal rates wouldn't ever be raised ... higher than Bill Clinton had them. Review the rates above before and after the tax cuts . The marginal rates before the tax cuts are Bill Clinton's marginal rates. Those are the rates John Kerry is leaving open to be raised if he's elected. So much for being a low marginal tax rate kinda guy. More of Kerry trying to have it both ways. I'm a little disappointed that Business Week let him get away with this nonsense. |
Seems consistent to me. He's just not going to raise them above %39.6. He didn't say he would never raise them...just that he wouldn't raise them above that percent.
Posted by: Jon Henke at July 23, 2004 10:58 AM
Then you read the answer completely differently than I do.
First he tells he believes in low marginal rates.
That's a flat out lie, despite the fact that he goes to pains to tell us how he voted to reduce the marginal rate to 28% while neglecting to tell us he also voted to push it up to 39.6%. His "neglect" is telling. It is done to paint a picture of someone who's entirely committed to low marginal rates when that's not at all true.
Then he tells us he's "not going to raise marginal taxes --- ever" when in the very next breath he say he is. Which is it? Why not just say "look I'm for raising the marginal rate on the highest tax bracket and leaving the other alone"? That's been his claim in the past. Why this nonsense?
Maybe its the phrasing, but while you may deem it to be "consistent" I find it to be purposely misleading and another example of him trying to have it both ways.
Posted by: McQ at July 23, 2004 11:12 AM
Look at it this way: "I'm not going to raise marginal rates above %39.6...ever".
He's not saying he won't raise them ever....just that he won't raise them above 39.6%.
Of course, if that's true, it raises a very serious question about how he plans to pay for it all and reduce the deficit, since raising them to that point won't come close to paying for his plans, never mind the deficit.
Posted by: Jon Henke at July 23, 2004 11:15 AM
Again, Jon, not the point. The point is the entire answer, at least in my view, is designed to create the perception that he believes in low marginal rates when in fact if you read his answer and look at his voting record he doesn't its clear he doesn't.
His answer sucks. Its another "I voted for it before I voted against it".
Kerry wants people to believe he's for low marginal rates when he has only one vote which would even hint at such a belief. Of course he touts that.
Telling us he's going to raise the top rate 6.6 precentage points does not square with "I believe in low marginal rates" or "I'm not going to raise marginal rates --- ever...". The top rate is a part of the "marginal rates" is it not?
The "Bill Clinton" bit is also him saying that the other rates are fair game if he's elected, all the while falsely claiming he's "not going to raise them - ever."
The only reason Kerry is focusing on the top rate is he knows, politically, he can't touch the others at this time. Elect him and watch what happens.
But to pretend he's a "low marginal rate" kinda guy with no plans to raise all the marginal rates is just flat disingenuous.
Posted by: McQ at July 23, 2004 11:33 AM
Fair enough, and I agree with a lot of what you say. I'm just taking issue with the idea that Kerry said he wasn't going to raise marginal rates "ever", when he said he wasn't going to raise them above a certain point, ever.
Bit of a difference.
Posted by: Jon Henke at July 23, 2004 11:52 AM
It would be interesting to see how his statements in the BW interview mesh with what he says on the road.
I'll give him the mulligan on the rate quote - he did say "not above 39.6%"
Did you ever wonder why that rate has a decimal point?
My guess is that they wanted 40%, but figured that would generate an outcry, so they settled for 39.6, figuring that we'd just look at the "3" - as in the bargain stores' "$19.95".
He said: "I am 100% in favor of companies going abroad to do business -- I'd be an idiot not to understand that."
What else has he said about outsourcing?
"I'm not going to tax the wealthy."
At least, not while you're talking to businessmen.
Posted by: Mike at July 23, 2004 12:44 PM
It has a decimal, because it was created by adding a 10% "top-off" to the 36% rate.
10% of 36% = 3.6%
36% + 3.6 = 39.6%
Posted by: Jon Henke at July 23, 2004 12:47 PM
Jon: good comments. Obviously my point wasn't as clear as I wanted it to be, so with your help, I've now clarified it.
Posted by: McQ at July 23, 2004 12:49 PM
Actually, I read this as confirming that Kerry shares the usual assumption among Democrats that voters have incredibly short memories.
He could certainly have said "not raise rates over 39.6%" if he wanted to be clear -- but instead he said that he wouldn't raise rates above some far off, historical number that voters probably wouldn't remember.
And when politicians use that trick, I just naturally associate them with the Ministry of Truth.
Posted by: cthulhu at July 24, 2004 12:02 AM