Seemingly surprised at its own conclusion, the Seattle Post-Intelligencer has uncharacteristically confessed President Bush’s tax cuts have contributed to the recent economic upsurge.
The paper, noting the economy grew at a blistering 8.2 percent annual rate in the third quarter, said in an editorial yesterday, “We even think it’s fair to credit the president’s economic policies – including the tax cuts – for the recent economic gains. (Did we really say that?)”
The editorial then presented a caveat to the good economic news, however, its recommendation also had a conservative ring to it, essentially urging the Republican-led Congress to reduce spending.
Meanwhile, Democratic candidates continue to assail the tax cuts, including Rep. Richard Gephardt, D-Mo., who promises in a new television ad to get rid of the cuts in order to guarantee health insurance for all if he is elected.
Front-runner Howard Dean says he would repeal President Bush’s tax cuts to help double the nation’s investment in early childhood education by spending $110 billion over 10 years.
President Bush said the third-quarter explosion announced this week vindicates the massive cuts he pushed through Congress.
“This economy of ours is reacting to our policy,” he said, speaking at a fundraiser in Las Vegas Tuesday. “The American economy is strong and it is getting stronger.”
The president told cheering supporters: “Productivity is high; business investment is rising; housing construction is strong; the job base is expanding: The tax relief we passed is working.”
The 8.2 percent pace is the highest since 1984, in the wake of President Ronald Reagan’s tax cuts.
The rate, which stunned analysts, was more than double the 3.3 percent expansion of the second quarter.
“We are laying the foundation for greater prosperity and more jobs across America so that every single person has a chance to realize the American dream,” said Bush.
