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Richard Peterson letter: The Bush family favors the wealthy

Congress is discussing how much of a tax cut to give, and who will get it; lowering revenue while we're uncertain just how much our adventures in Iraq are going to cost. Strikes me as equivalent to deciding to buy a house or car, and at the same ...

Congress is discussing how much of a tax cut to give, and who will get it; lowering revenue while we're uncertain just how much our adventures in Iraq are going to cost. Strikes me as equivalent to deciding to buy a house or car, and at the same time, quit your job. But, at the federal level, it's called an economic stimulus program. It would seem to me more stimulus would come from some useful public works program, like the WPA building highways in the '30s, but that's not what I'm writing about.

The President wants a tax cut that favors the more wealthy among us. I'm not going to argue the morality of cutting the burden of cost of government for the people who are most benefiting from our nation's system, culture and resources. I want to address the issue of a tax cut for the wealthy being offered as a stimulus to the economy.

If Uncle Sam gave me and most folks a gift, we might pay down our credit cards with part of it, but we would spend part, and that would give some impetus, by the multiplying effect, to businesses in and around Fargo-Moorhead. But giving that gift to people who already can buy most anything they need, may not have the same effect. They might use the money to take a foreign vacation, stimulating the economy of Cancun or Morocco, or invest in low wage factories in Asia, stimulating the Asian economy.

But they might also keep the money in the good old US of A, buying government bonds which will be sold to finance the deficit caused by the tax cut. The tax cut which means the rest of us will be taxed to pay the interest on those government bonds.

If you didn't know, the Bush family's wealth didn't start in petroleum. Grandpa Prescott Bush was a financier, who loaned money to Nazi Germany. The president has deeper roots in high finance than in oil, and financiers do not like low interest rates.

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Richard Peterson

Moorhead

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