Prometheus 6: Now here's a harsh assessment

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February 06, 2004

Now here's a harsh assessment

I love it.

Help Grandparents of Rich Kids Now. Deal With Real Problems Later
FLOYD NORRIS

IT is said that you can determine a government's priorities by studying its tax proposals. By that standard, the Bush administration does not appear to be very interested in the biggest tax fight now going on with Europe.

Nor is it eager to deal with the prospect of the alternative minimum tax, which was intended for high-income earners, harming many middle-class taxpayers.

But assuring that wealthy Americans who die in 2011 and after will not face taxes on their estates is viewed as too important a decision to be postponed.

And in one of the lesser tax proposals in the budget released this week, President Bush offers a tax break for what must be a very small group of taxpayers: those who support their grandchildren even though the kids are independently wealthy or earning a substantial income on their own. For the first time, such grandparents will be able to claim dependent exemptions for the grandkids.

The most pressing corporate tax issue is the tax break for exporters that has been ruled illegal by the World Trade Organization. Europe plans sanctions next month if the tax is not repealed. Though the budget discusses the issue, it does not offer proposals. Chances are Congress will repeal that tax break while passing other corporate tax breaks that will cost the government a lot of money. By remaining silent, President Bush can make the revenue projection look less bad than it is.

Posted by P6 at February 6, 2004 09:34 PM
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