Senator Kennedy Flunks Economics……and Seems Determined to Make Sure Everyone Knows It.

Today, at the National Press Club, Senator Edward Kennedy (D-Mass.) recommended that Congress repeal portions of the tax cut signed into law by President Bush last June. Remarkably, Senator Kennedy blamed the current economic stagnation on the tax cut and argued that the path to prosperity is paved by confiscating a bigger chunk of every worker’s paycheck.

Paul Beckner, President and CEO of Citizens for a Sound Economy issued the following response:

“Over the course of his political career, Senator Kennedy has always worked against the interests of taxpayers and economic growth by pushing a big-government agenda funded by punitive tax rates. But he was always a wolf coming as a wolf. What made his speech today so outlandish was the way he tried to pretend that his toxic prescription for our economic ills would actually help the economy.

“To raise taxes and cut into discretionary income during a recession is undoubtedly the worst policy course we could take. Senator Kennedy should be ashamed to disguise his desire for more expansive government in nonsensical economic arguments. The tax increase that Senator Kennedy calls for will cost American jobs, reduce investment incentives, and lower overall economic activity. This is not speculation, this is common sense, Economics 101.

“Worse, Senator Kennedy actually tried to pretend that his tax increase was not really an increase at all, it was simply a ‘delay.’ Evidently, the unconscionable misuse of language did not end when President Clinton left town. No matter how you slice it, Senator Kennedy recommends a change in the law that will increase people’s taxes, and that is wrong, particularly in a recession.

“The Congress needs to act to make the Bush tax cut permanent, so consumers and businesses can make long-term investment and financing decisions with greater certainty. In addition, Congress should speed implementation of the remaining components of the President’s tax cut. Only $38 billion of the President’s tax cut has gone into effect thus far. Not only has this had little to no effect on the surplus – despite what Senator Kennedy may want us to believe – it is not enough to jumpstart a $10 trillion economy in recession.”

Paul Beckner is available for comment. To schedule and interview, please contact Erick Gustafson at 202-942-7641.