The Tax Cut That Ain't

NY Times -- The Senate bill would not end the double taxation of dividends that Mr. Bush has crusaded for across the country. It would halve the dividend tax this year, then stop it for three years, at which point it would come back again. This maneuver, known as a sunset, was necessary to satisfy senators who said the tax cut could not cost more than $350 billion, less than half of President Bush's original request. Supporters say they hope that after the cut expires in 2007, they can reinstate it.

The bill raises the taxes of Americans working abroad, to stay within the $350 billion shoebox, and reduces only slightly the so-called marriage penalty on two-income couples. To placate centrist senators concerned about the huge budget gaps in the states, the bill would provide $20 billion in aid to state and local governments.

Sunset tax bills are by their nature lies, the only purpose is to hide the true cost. With an administration that has promised to reduce taxes each and every year this is an outrageous lie. A tax cut without balancing the budget is another lie - it is just raising taxes in the future.