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The Bush Record
Work, Family, & Community

DLC | Blueprint Magazine | October 7, 2004
Bush's Other War
By Bruce Reed

Table of Contents

There are two big problems with George W. Bush as a wartime president: He's losing the war on terror, and winning the war on work. He shouldn't get away with either.

Americans know the war on terror will be a long, hard struggle, and whatever our partisan differences, all of us have been rooting for America to win it. But three years after September 11, it's hard to tell which is more dangerous -- that we're not making enough progress on terror, or that Bush is so eager to declare victory.

In 2000, Bush promised to be a "reformer with results." This time his motto seems to be "resolve without results." Bush is a world-class cheerleader, but to win, our team needs a better game plan and coach.

Ironically, losing ground in the war on terror and in Iraq has spared Bush from having to defend the war on work he's winning handily here at home.

For more than two centuries, under Democratic and Republican presidents alike, America has aspired to be a middle-class country that rewards hard work and sides with those who pull themselves up by their bootstraps. Bush and Dick Cheney want to change that. Their entire domestic agenda is driven by one goal: to end the taxation of wealth, and shift the whole tax burden onto work.

Bush and Cheney are halfway there. In 2001, they repealed the estate tax and cut tax rates for the upper brackets. They went on to preserve and protect those cuts, and make them permanent, in the face of record deficits and a war that could last as long and cost as much as the Cold War.

In 2003, Republicans went further, with sharp cuts in the tax rate on capital gains and dividends. If the 2001 cuts have been a disaster for the nation's finances, the 2003 cuts were an attack on the nation's soul.

As Warren Buffett, the great and very wealthy investor, points out, we now tax ordinary people more on the work they do than we tax billionaires on the stock profits they turn or the wealth they inherit.

Soldiers, police officers, and firefighters pay a higher tax rate for risking their lives every day than Halliburton executives will pay for exercising their stock options. That's what Bush Republicans call values.

Worse, their war on work is just beginning. Bush says his top goal for a second term will be tax reform, and conservatives make no secret about what reform will bring. Grover Norquist, the Donald Rumsfeld of Bush's war on work, wants to eliminate the capital gains tax, the dividend tax, and the corporate income tax. If Republicans have their way, the only thing America will still tax is going to work for a living.

The middle class has already taken a terrible beating on Bush's watch. In the 1990s, incomes grew for lower- and middle-class families, not just for the wealthy. Under Bush, middle-class incomes have dropped $1,500, and poverty is going up while the middle class is shrinking. Families are paying more for college, health care, and energy. Employers must choose between dropping health coverage, holding back raises, or laying people off instead of hiring.

But the most lasting damage of Bush's agenda isn't the economic squeeze that families are feeling now. The real price we will pay is a moral one.

The war on work is not about the size of government or the overall level of taxation. If Bush and Cheney cared about that, they would try to limit government spending, not run up enormous deficits that will cost the government and the economy dearly down the road.

This debate isn't about an abiding faith in supply-side economics, either. Bush has changed the rationale for his tax cuts every year since he proposed them. He rushed to extend them despite overwhelming evidence that confirms the lessons of the '80s: These cuts don't work.

Bush isn't just ignoring the economic literature; he's going against Scripture. "No one can serve two masters," says the Book of Matthew. "You cannot serve God and wealth."

In the end, Bush's tax plan isn't an economic theory. It's a social theory: Those at the top matter more than the rest of us.

For decades, Republicans accused Democrats of believing that helping a particular class was more important than expanding opportunity for all. Now Bush has made helping one class his party's whole reason for existence.

That is not the American way. This country was built on a different set of values: that all citizens are equal, that everyone willing to work hard should have a chance to get ahead, and that special privileges for the few stand in the way of equal opportunity for all.

Those are the values at stake in this election. Bush is winning a war he couldn't possibly defend, and defending a war he's not winning. America deserves better than that.

Bruce Reed is president of the DLC and was President Clinton's domestic policy adviser.