Democratic Presidential Candidate John Edwards, as with many of the Democratic Party Candidates, has already trotted out the “Rich are getting richer, and the poor are getting poorer”. The Class Warfare Card has been pulled out once again and you can be sure it will be used many times from now to November 2008... David Limbaugh has a great article about this in the Washington Times: http://washingtontimes.com/article/20070906/COMMENTARY/109060023/1012
Mr. Hederman concludes, "The Census report refutes the notion that 'the rich are getting richer and the poor are getting poorer.' Instead, all quintiles are growing wealthier with more money income."
Heritage's Rea S. Hederman Jr. notes the U.S. Census Bureau's annual report shows in 2006 the growing economy increased median family income and lowered the poverty rate, and income inequality did not statistically increase. This is without even factoring in tax transfer payments from upper- to lower-income groups.
It is without a doubt that these same Candidates will do whatever possible to blame this “Class Warfare Issue” on the Bush Tax Cuts of 2003 but the hard fact numbers prove otherwise…
The Heritage Foundation reports the Office of Management and Budget's Mid-Session Review — an update of its budget projections from February — shows the 2003 tax cuts have boosted economic activity by increasing incentives to work, save and invest. The deficit will decrease from $248 billion last year to $205 billion this year. "One hundred percent of the budget deficit's decline is caused by revenue increases, and none by spending cuts. Lawmakers have not cut one dollar from the budget."
If this confirmed data ever makes it to the light of day in the mainstream media the Candidates will once again claim that the tax cuts and greed of this administration will be paid for by our children. Once again, the data:
And get this: "At 1.5 percent of GDP, the budget deficit is now lower than it was in 24 of the past 30 years." Mr. Bush will have fulfilled his promise to cut the budget in half despite spending on the war, Katrina and even entitlements".
This data does not mean that we do not have hard decisions to make in the future and spending continues to be the main problem of the equation. But it is interesting to recall who hijacked efforts to improve and correct the massive spending in entitlement programs….
Heritage cautions that out-of-control entitlement spending "still threatens America's fiscal and economic future." But we should note that here, too, Democrats ruthlessly played the class warfare card to prevent President Bush from accomplishing entitlement reform.