President Bush on Wednesday implored Congress to make his tax cuts permanent in order to avert a tax hike that would be economically “disastrous” now that gasoline prices are soaring.
Speaking to a group of engineering executives, Bush predicted the booming economy will go bust if Democrats succeed in blocking legislation to make his tax cuts permanent.
“The American people will be hit with $2.4 trillion in higher taxes over the next decade,” Bush warned. “It would be handed over to government — that’s where the money would go.
“It would be taken out of the economyand given to people here in Washington, D.C., to spend. A tax increase would be disastrous for business, disastrous for families, and disastrous for this economy.”
Republicans in the House and Senate are trying to extend tax cuts on dividends and capital gains through 2010. But many Democrats oppose the measure.
“Bush’s tax plan offers next to nothing to average Americans while giving away the store to multimillionaires,” said Sen. Minority Leader Harry Reid, D-Nev. “The tax reconciliation bill giveaway on capital gains and dividends will do much more for ExxonMobil board members than it will do for ExxonMobil customers.”
Bush, who once owned a Texas oil company, insisted he is not shilling for such firms.
“We must, as a nation, in order to stay competitive, diversify away from crude oil,” he said. “I know it sounds weird for a Texan to say, but I’m telling you it is essential.”
Citing statistics that show an economy that has been growing for more than four years, Bush mocked Democrats for voting overwhelmingly against his tax cuts in 2001.
“One leading Democrat said that tax cuts were a huge mistake,” he said. “Another predicted that the tax cuts would do nothing to create jobs.
“A year and a half ago, a Democrat senator informed us the economy may be on the brink of collapse,” he added. “The Democrats’ record of pessimism has been consistent — it’s been consistently wrong.”
But the economy’s strong growth has been tainted somewhat by surging oil prices, which are hovering around $75 per barrel. The nationwide average cost of unleaded gasoline is $2.92 per gallon.
