LET THEM EAT CAKE

The House passes $56 billion in tax cuts for dividends and capital gains.

The tax measure's cost would more than offset the savings in a tough budget approved by the House last month, which would trim federal spending by $50 billion over five years by imposing new fees on Medicaid recipients, squeezing student lenders, cutting federal child-support enforcement and paring the food stamp rolls.

Democrats charged that those spending cuts, largely affecting programs for the poor, are making way for tax cuts mainly for the rich that would increase the federal budget deficit. "The poor suffer, the rich benefit. The middle class is paying the bill," said House Minority Leader Nancy Pelosi (D-Calif.).
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"The Democrats want to take away the paychecks of [my constituents], replace them with welfare checks and call that compassion," said Rep. Jeb Hensarling (R-Tex.). (Emphasis mine)

Well now, I just happen to be one of Congressman's Hensarling's constituents.

According to 2000 census data, just 10.2% of the families in the fifth district had a combined income in excess of $100,000. The median family income was $40,581, median household income $36,451. Overall, 15.4% of the people live below the poverty line, specifically 12.4% of those 65 and older, 20% of the children under 18. Approximately two thirds of households had an income below $50,000. Nearly a third of households were headed by a female with no husband present.

Now it appears to me that my fellow constituents are, in the main, highly unlikely to benefit from reductions in the tax rates on capital gains and investment dividends. To the contrary, they are more likely to suffer from "new fees on Medicaid recipients, squeezing student lenders, cutting federal child-support enforcement and paring the food stamp rolls."

How our Tom DeLay-wannabe Congressman could equate opposition to this bill with "taking away [our] paychecks" can only be inferred to be an attempt to equate such tax cuts with job growth. As I posted last week, this argument doesn't hold water.

Jeb Hensarling obviously considers himself to be employed solely by the more affluent of his constituents.

Just another Texas Rethuglican pimple.

Tags: tax cuts, Jeb Hensarling, Texas 5th district