Republican party in Na Ga Da intends to increase taxes
"Alrighty then, let's travel down memory lane and relive the legendary blunder of none other than President George H.W. Bush. You remember him, right? The guy who walked back his infamous "read my lips, no new taxes" promise faster than a cat chasing a laser dot. Funny as all get-out, because it perfectly encapsulated Bush's sudden about-face from his 1988 Republican presidential nomination acceptance speech.
This golden gaffe was the setup for a classic standup routine by Dana Carvey. And trust us, it was gut-busting hilarious - na-ga-da indeed! After all, Bush's move to increase taxes, particularly the top rate, was the very opposite of what he had vehemently promised earlier.
Now, flash forward to 1990, and our man in the Oval Office felt the heat, alright. Congress, predominantly run by the Dems, was more than happy to oblige in implementing the tax increase. Guess what? The headlines were topped by an increase at the very top.
Fast forward to the 1992 election, and Bush's re-election effort took a nosedive. He scooped up just 37 percent of the vote. Oh lawdy, that's bad news. No incumbent, not even Hoover in 1932, has ever done that poorly in a re-election bid. Talk about a rough ride!
Democrat Bill Clinton, the winner that year, had the last laugh as he hiked the top tax rate to 39.6 percent. Talk about a smack in the face, right? But wait, it gets better. Clinton even loosely referenced Bush's broken promise as he increased the top tax rate. Ouch.
Now, what's all this about? Well, just like they did in 1990, Republicans in Congress are thinking about hiking the top tax rate. Is history about to repeat itself? You bet your sweet bippy! The Republican party has been well aware for decades that they should do everything in their power to keep the top tax rate from rising.
Why, you might ask? Well, according to Arthur Laffer and yours truly, maintaining a low top tax rate is the key to unlocking the American Dream for everyone. On the other hand, hiking it is the foolhardy, leftist way.
But before we delve into the economics of it all, let's talk about the wacky world of academia. There's this economics Nobelist named Peter Diamond, and he insists that the top tax rate should be a whopping 70 percent! Na-ga-da, man! It's the complete opposite of what most scholars are saying in the top-tier journals. You see, they're advocating for zero tariffs, the result being free trade - pretty standard stuff, actually.
It's essential to recognize that the whole scholarly economics discussion on taxation is a bunch of hooey. Toss it out, folks, and act rationally, like actual, non-over-intellectualized leaders. Cut the top tax rate to make America great again!
Okay, let's take a stroll down memory lane and delve deeper into the effects of Bush's broken promise. The H.W. Bush administration turns into a sad-sack picture as the economy took a tumble over 1990-1991, and they were trying to gear up for the re-election effort. This C-Span video from 1992 shows the troika - Treasury secretary, Council of Economic Advisors Chair, and Budget Director - doing a deathly impersonation of the walking dead as they hype, after a fashion, the Bush record.
Now, this dilemma is far from laughs and jollies. It's exceedingly disappointing that we find ourselves even remotely discussing this topic today."
Enrichment Data:
Overall:
The consequences of George H.W. Bush breaking his 1988 presidential campaign pledge "Read my lips, no new taxes" were significant and far-reaching. In October 1990, President Bush signed the Omnibus Budget Reconciliation Act of 1990, which included tax increases despite his initial promise. This move had profound effects on his political career and the perception of his presidency.
Key Consequences:
- Election Loss: The broken pledge is often cited as a major factor in Bush's defeat in the 1992 presidential election. He faced significant criticism from within his own party for reneging on a key campaign promise, which eroded the trust of many Republican voters[2][3].
- Loss of Republican Support: The tax increase alienated many conservative Republicans who felt betrayed by Bush's decision. This perceived betrayal contributed to a decline in his approval ratings among Republicans[2].
- Economic Context: At the time, the U.S. was experiencing a recession with high unemployment rates. The economic conditions were already unfavorable, and the tax increase was seen as adding to the economic woes, further damaging Bush's popularity[2].
- Historical Impact: The phrase "Read my lips" became a cautionary tale in politics about the dangers of making promises that might not be kept. It serves as a reminder of the importance of maintaining credibility with one's constituents[1][3].
In summary, breaking the "no new taxes" pledge led to George H.W. Bush's electoral defeat, eroded his support within the Republican Party, and left a lasting impact on political discourse.
- The controversial tax increases implemented by President George H.W. Bush, particularly the top rate, significantly affected his political career and public perception, as it was a direct contradiction of his 1988 campaign promises.
- Despite Reagan's policies and the Republican party's stance on taxation, Bush's decision to increase taxes set a precedent for future discussions, highlighting the potential political costs of going against the party's ideology.
- Fast-forwarding to the 1992 election, Bush faced a hard battle for re-election, evident in his obtaining only 37 percent of the vote, a historically low percentage for any incumbent president during re-election bids.
- Democrat Bill Clinton, who defeated Bush in the 1992 election, raised the top tax rate to 39.6 percent, jokingly referencing Bush's broken promise in his efforts to address the budget deficit.
