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...next couple of quarters, largely because everyone from homeowners to truckers to airlines will be paying more for energy. But the U.S. economy can withstand some big blows. The nation was emerging from recession on 9/11, and that event did not ruin the recovery (thanks to billions in tax breaks). A slowdown may give the Fed reason to suspend its interest-rate hikes, a prospect that has already sparked a bond-market rally. While Katrina's impact on the Gulf economy is devastating in the near term, an infusion of federal disaster-relief dollars should stimulate industries from homebuilding...

Author: /time Magazine | Title: Billion Dollar Blowout: Billion Dollar Blowout | 5/10/2006 | See Source »

...what Britain did in the mid-90s: Privatize the national rail system. Historically, nationalized rail systems have often been trainwrecks. Before privatization, France’s national rail was 200 billion francs in debt, and the UK’s rail system was a heavy burden on tax-payers. Ten years down the track since privatization, the Association of Train Operating Companies (ATOC) reports that the British National Rail currently holds Europe’s highest growth rate of passenger kilometers. Amtrak could do the same...

Author: By Emily C. Ingram | Title: Plane Pain | 5/10/2006 | See Source »

...most of his votes from the upper income brackets. Since the exceptionally rich, by definition, make up a small portion of the population, Bush relied on the upper-middle class for the bulk of his votes. Nobody wrote a book about it, because everybody expected it. After the Bush tax cut, commentators agreed, the country club set would be nuts to vote for anybody else. There’s just one problem: Bush didn’t do what everybody thought...

Author: By Samuel M. Simon | Title: What’s Wrong With Mamaroneck? | 5/10/2006 | See Source »

...Bush began promoting his tax cut, he repeatedly threw out one statistic intended to prove that his tax plan was actually good for the poor. The Bush tax cut, he claimed, would increase the percentage of the nation’s tax burden shouldered by taxpayers from the top 40 percent of income earners. Since so much of what Bush said about his tax plans was just plain fabricated, I and a lot of liberals assumed that this statistic was just another example of “fuzzy math.” But it wasn?...

Author: By Samuel M. Simon | Title: What’s Wrong With Mamaroneck? | 5/10/2006 | See Source »

...Bush’s tax cuts allowed a fair number of low-income taxpayers to stop paying income tax. Every one of these taxpayers pays far more in regressive payroll taxes than they ever did in income tax, but this move allowed Bush to claim that his tax cut was all about the working class. Since Bush was cutting 100 percent of the income tax burden of low-income payers, he could claim that his tax cuts were actually better for the working class than for the wealthy. The millions that the richest Americans took home thanks to the tax...

Author: By Samuel M. Simon | Title: What’s Wrong With Mamaroneck? | 5/10/2006 | See Source »

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