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markalot
30 May 2006, 01:03 PM
I found this an entertaining example of how good people have to force themselves into the party mold and then fight against it just to get elected. I find that I like something of both candidates, but in this case I would probably vote for the democrat because I think she's more moderate on social issues.


Rep. Melissa Bean fights to keep an Illinois House seat vital to her party
By Tom Curry
National affairs writer
MSNBC
Updated: 1:38 p.m. ET May 30, 2006

LAKE ZURICH, Ill. - No one makes a more compelling case for the tax cut that President Bush recently signed into law than Melissa Bean, the first-term Democrat who represents the Eighth Congressional District of Illinois.

Thanks to Bean and others who voted for the law, people who derive income from dividends and capital gains will enjoy low rates through 2010, and at least some upper-income people will be protected from the alternative minimum tax.

Most of Bean’s fellow Democrats were disgusted by the bill. “Another windfall for the wealthy while everybody else gets to work for a living,” griped Rep. Rahm Emanuel, chairman of the Democratic Congressional Campaign Committee and a fellow Illinois congressman.

But Bean says the tax cut made sense for her district which runs northwest from Chicago up to the Wisconsin border.

“It’s an investor-class district, an upper-middle income district that I represent,” Bean explained. “Most people have investments. Obviously, wealthy folks have larger portfolios and are going to benefit to a greater degree," she said, "but if you look at the bill itself, it also benefited your lowest income individuals and eliminated the taxes they would have paid on dividends and capital gains."

The bill, Bean said, "very much represents the investor-class district I represent, particularly seniors.”

Bean in the cross-hairs
A brisk, no-nonsense former business executive, Bean is the Republicans’ number one target in this fall’s campaign. She won her seat two years ago by upsetting veteran Republican Rep. Phil Crane.

Because Bean’s district has such a Republican tilt, Republicans argue that she’ll have a hard time holding her seat. Bush carried the district with 56 percent in the 2004 presidential election.

By the beginning of April Bean had raised a total of $2.3 million, the most of any House member.

Her Republican opponent, former Bank of America investment banker David McSweeney, who prevailed in a tough primary, had only $146,000 in cash on hand.

About three-quarters of McSweeney’s campaign funds have come from his own deep pockets.

But he’s getting celebrity help from former New York City Mayor Rudolph Giuliani, who will be starring at a fund-raising event for him next week in Chicago, as well as from House Speaker Dennis Hastert and Vice President Cheney, who are also doing fund-raisers for him.

McSweeney argued that Bean votes against some of the bills she ultimately votes for, casting doubt on her credibility. “Even in the case of the tax bill, this is a good example: she voted against the enabling legislation (the rule) to bring this bill to the floor. If she had her way, this legislation would have never been brought to the floor.”

He added, “She’s trying to be all things to all people.”

A conservative/liberal dichotomy
Bean voted for the Central America Free Trade Agreement (CAFTA) and for the bill to make it harder for consumers to declare bankruptcy and escape their debts. Both votes displeased members of her party.

But don’t those votes also help her make the case she’s independent and not a clone of House Minority Leader Nancy Pelosi? We asked that question of Rep. Tom Reynolds, R-N.Y., who as chairman of the National Republican Congressional Committee, leads his party’s efforts to hold on to its House majority.

In reply, Reynolds wise-cracked, “You mean (she’d) become a Republican?”

Then he added, “I appreciate that once in a while she sees the wisdom of our actions and joins our votes and I hope she will continue.”

Despite her tax cut fervor, Bean isn’t a conservative Bush Democrat.

On roll call votes in 2005 on which Bush took a position, Bean voted in support of him 48 percent of the time. That compares with 16 percent for Pelosi and 24 percent for Emmanuel.

Bean is a liberal on social issues such as abortion. She opposes a constitutional amendment to outlaw same-sex marriage; she supports traditional marriage, but says it is an issue for the states. She has been endorsed by the gay rights advocacy group, the Human Rights Campaign.

McSweeney supports a constitutional amendment to define marriage as the traditional man-woman relationship.

He opposes abortion except in cases of rape and incest or when needed to save the life of the mother.

McSweeney calls for means testing of the Medicare prescription drug entitlement which Congress created two years ago. He says the program should be targeted only to low-income and middle-income people

“It doesn’t make any sense to me that the richest people in this country are getting the benefit of subsidized drugs,” he said.

Which way on spending?
McSweeney isn’t shy about assailing his own party on federal spending (up 8 percent so far this year, compared to last): “We’ve lost our way as a party on spending,” he said.

As for Bean, even though she’s concerned by the federal deficit, she says she would not support an increase in income tax rates for the top one percent of households (those with incomes above $300,000) in order to help reduce the deficit. “I don’t know that’s even being proposed,” she said. “I’m not looking at that at all right now.”

She added: “I do support stimulative (tax) cuts. I’ve supported every tax cut that’s come before me since I’ve been in Congress.”

Immigration: A dividing issue
On immigration Bean said she opposes “a blanket amnesty,” but also opposes “mass deportation” and suggests that “somewhere in the middle ground” there ought to be penalties against illegal immigrants, but also ought to be “a way to integrate folks that are here and bring them out of the shadows.”

McSweeney says he opposes the Senate bill’s provision of giving a pathway to legal status for illegal immigrants.

Bean’s vote for the tough House border control bill, championed by Rep. James Sensenbrenner, chairman of the House Judiciary Committee, has alienated some in organized labor.

“We represent a lot of people in the meatpacking and processing industry,” said Kenneth Boyd, the president of Local 1546 of the United Food and Commercial Workers union. “A lot of those people are immigrant workers. Her vote on the Sensenbrenner bill really turned us off.”

Boyd said about 3,000 UFCW members live in his Bean’s district. (Bean’s margin of victory in 2004 was about 9,000 votes.)

Boyd, who lives in Bean’s district, said her vote for the Sensenbrenner bill “was a vote against our members. We have a very large Hispanic membership and Polish membership and that vote goes against all immigrants.”

How will this affect the Bean campaign?

“We’re not going to work against her, but I also can’t go to my members and say ‘We need to support somebody who voted against you and your families.’”

Despite this, the UFCW political action committee has chipped in $10,000 to Bean’s campaign, with most recent installment coming in April.

Several other unions contributed to her campaign before her vote last July for CAFTA.

Bean faces an independent challenge
Three unions, the Teamsters, the Machinists, and UNITE, which represents garment workers and hotel and casino employees, have funded independent Bill Scheurer, who is trying to muster the nearly 14,000 signatures by June 26 that he needs to get on the ballot as a third-party candidate.

“She’s essentially a corporate candidate,” Scheurer said of Bean, adding that “her voting record on progressive values is horrendous.”

Scheurer, a lawyer, lay minister and self-described “peace activist” is a political eclectic: he opposes both the Iraq war and “abortion as a method of birth control.” He also says, “We should bring our troops home from around the world and deploy them to protect our borders.”

One of his daughters is a captain in the Army; one of his sons just got back from a year tour of duty in Iraq.

“The vast majority of people out here don’t give a **** about the political parties,” Scheurer said. “People understand that these parties cannot address the problems that we face as a nation.”

And with part of this, Bean agrees: “I represent a district which is very independent by nature…. They don’t wear hard ‘R’s’ or hard ‘D’s.’ They’re proud of their independence and they vote for the person they think represents them best.”

If enough voters in her district are independent enough to put Scheurer on the ballot, it will make this race a more complicated one.
© 2006 MSNBC Interactive

© 2006 MSNBC.com

URL: http://www.msnbc.msn.com/id/13036420/page/2/

mike
30 May 2006, 01:11 PM
But Bean says the tax cut made sense for her district which runs northwest from Chicago up to the Wisconsin border.

“It’s an investor-class district, an upper-middle income district that I represent,” Bean explained. “Most people have investments. Obviously, wealthy folks have larger portfolios and are going to benefit to a greater degree," she said, "but if you look at the bill itself, it also benefited your lowest income individuals and eliminated the taxes they would have paid on dividends and capital gains."

The bill, Bean said, "very much represents the investor-class district I represent, particularly seniors.”

Yep - used to work up that way: it's big buxx.

george
30 May 2006, 01:15 PM
“Another windfall for the wealthy while everybody else gets to work for a living,” griped Rep. Rahm Emanuel, chairman of the Democratic Congressional Campaign Committee and a fellow Illinois congressman.



Supply Side
How to Soak the Rich (the George Bush Way) (http://online.wsj.com/article/SB114670305012743294-search.html?KEYWORDS=IRS&COLLECTION=wsjie/6month)

By STEPHEN MOORE
May 4, 2006; Page A14

With the House and Senate preparing to vote on extending George W. Bush's investment tax cuts, it's no surprise the cries against "tax giveaways to the rich" grow increasingly shrill. Just yesterday Senate Minority Leader Harry Reid charged that the Bush tax plan "offers next to nothing to average Americans while giving away the store to multi-millionaires" and then fumed that it will "do much more for ExxonMobil board members than it will do for ExxonMobil customers."

Oh really. New IRS data released last month tell a very different story: In the aftermath of the Bush investment tax cuts, the federal income tax burden has substantially shifted onto the backs of the wealthy. Between 2002 and 2004, tax payments by those with adjusted gross incomes (AGI) of more than $200,000 a year, which is roughly 3% of taxpayers, increased by 19.4% -- more than double the 9.3% increase for all other taxpayers.

Between 2001 and 2004 (the most recent data), the percentage of federal income taxes paid by those with $200,000 incomes and above has risen to 46.6% from 40.5%. In other words, out of every 100 Americans, the wealthiest three are now paying close to the same amount in taxes as the other 97 combined. The richest income group pays a larger share of the tax burden than at anytime in the last 30 years with the exception of the late 1990s -- right before the artificially inflated high tech bubble burst.


Millionaires paid more, too. The tax share paid by Americans with an income above $1 million a year rose to 17.8% in 2003 from 16.9% in 2002, the year before the capital gains and dividend tax cuts.

The most astounding result from the IRS data is the deluge of revenues from the very taxes that were cut in 2003: capital gains and dividends. As shown in the nearby chart, capital gains receipts from 2002-04 have climbed by 79% after the reduction in the tax rate from 20% to 15%. Dividend tax receipts are up 35% from 2002 to 2004, even though the taxable rate fell from 39.6% to 15%. This is as clear evidence of a Laffer Curve effect as one will find: Lower rates produced increased revenues.

What explains this surge in tax revenues, especially at the high end of the income scale? The main factor at play here is the robust economic expansion, which has led to real income gains for most tax filers. Higher incomes mean higher tax payments. Between 2001 and 2004, the percentage of Americans with an income of more than $200,000 rose from 12.0% to 14.2%. The percentage of Americans earning more than $50,000 a year rose from 40.8% to 44.2% -- and that's just in two years. While these statistics are not inflation-adjusted by the IRS, price rises were relatively modest during these years, so adjusting wouldn't alter much.

We can already hear the left objecting that the rich are paying more taxes simply because they have hoarded all the income gains, while the middle class and poor wallow in economic quicksand. But, again, the IRS data tell a more upbeat story of widespread financial gains for American families. The slice of the total income pie captured by the richest 1%, 5% and 10% of Americans is lower today than in the last years of the Clinton administration.

So how can the media contort these statistics to conclude that the Bush tax cuts only benefited the affluent? The New York Times claims that the richest 0.1% got 5,000 times the tax benefit than those with less than $50,000 of income. That figure can only be true if one assumes that there were no economic benefits from the tax cuts whatsoever; and that lower taxes on income, capital gains and dividends resulted in no changes in the real economy -- not the value of stocks, not business spending, not employment, not capital flows into the U.S., not corporate dividend payments, not venture capital funding -- nothing. The underlying assumption of this static analysis is that tax cuts don't work and that incentives don't matter.

Of course, in the real world, financial incentives through tax policy changes matter a great deal in altering economic behavior. And we now have the evidence to confirm that the latest round of tax cuts worked -- five million new jobs, a 25% increase in business spending, 4% real economic growth for three years and a $4 trillion gain in net wealth. So now the very class-warfare groups who, three years ago, swore that the tax cuts would tank the economy rather than revive it, pretend that this robust expansion would have happened without the investment tax cuts. Many Democrats on Capitol Hill recite this fairy tale over and over.

One final footnote to this story: Just last week, the Department of the Treasury released its tax receipt data for March 2006. Tax collections for the past 12 months have exploded by 14.4%. We are now on course for a two-year increase in tax revenues of at least $500 billion, the largest two-year increase in tax revenue collections after adjusting for inflation ever recorded. So why are the leftists complaining so much? George Bush's tax rate cuts have been among the most successful policies to soak the rich in American history.

Breeze
30 May 2006, 02:10 PM
Just last week, the Department of the Treasury released its tax receipt data for March 2006. Tax collections for the past 12 months have exploded by 14.4%. We are now on course for a two-year increase in tax revenues of at least $500 billion, the largest two-year increase in tax revenue collections after adjusting for inflation ever recorded.

Party On (http://www.timesonline.com/site/news.cfm?newsid=16709746&BRD=2305&PAG=461&dept_id=478566&rfi=6)

When President Bush signed legislation that extended his tax cuts, he suggested they were responsible for the surge of new revenue into the Treasury.

But all he and the GOP-controlled Congress really did was pile $70 billion more in debt on future generations of Americans.

Knight Ridder Newspapers reported that Bush's assertion that his tax cuts "means more tax revenue" is just not true. "A host of studies, some of them written by economists who served in the Bush administration, have concluded that tax reductions mean less money for the Treasury," it reported.

The reasons for the surge in revenue were the same as in the '90s--the population and the economy both grew. That information came from Douglas Holtz-Eakin, who was the chief economist for Bush's Council of Economic Advisers in 2001 and 2002 and the nonpartisan Congressional Budget Office until last year.

The news service even managed to get Treasury Secretary John Snow to concede that tax cuts don't pay for themselves.

The problem with this administration and, unfortunately, far too many Americans is that they think the party never ends.

the happy prole
30 May 2006, 02:51 PM
"but if you look at the bill itself, it also benefited your lowest income individuals and eliminated the taxes they would have paid on dividends and capital gains."

Yeah, the poor are just drowning in capital gains taxes. :rolleyes: "Hey buddy, can a borrow a dime? I've got these 500 shares of Google to sell but I can't afford the tax."

I don't really see much to admire about Bean from that article. Sounds pretty much like pork barrel hypocracy to me.

george
31 May 2006, 11:36 AM
Party On (http://www.timesonline.com/site/news.cfm?newsid=16709746&BRD=2305&PAG=461&dept_id=478566&rfi=6)

When President Bush signed legislation that extended his tax cuts, he suggested they were responsible for the surge of new revenue into the Treasury.

But all he and the GOP-controlled Congress really did was pile $70 billion more in debt on future generations of Americans.

Knight Ridder Newspapers reported that Bush's assertion that his tax cuts "means more tax revenue" is just not true. "A host of studies, some of them written by economists who served in the Bush administration, have concluded that tax reductions mean less money for the Treasury," it reported.

The reasons for the surge in revenue were the same as in the '90s--the population and the economy both grew. That information came from Douglas Holtz-Eakin, who was the chief economist for Bush's Council of Economic Advisers in 2001 and 2002 and the nonpartisan Congressional Budget Office until last year.

The news service even managed to get Treasury Secretary John Snow to concede that tax cuts don't pay for themselves.

The problem with this administration and, unfortunately, far too many Americans is that they think the party never ends.


I'm not sure if you are saying that the 14.4% increase in tax revenue for the last twelve months is a function of the growth of the population and the economy.

If you are, then you must be saying that the population grew by more than 10% over the last year, since the economy grew by 3.6%. This would be four times the normal population growth rate.

the happy prole
31 May 2006, 12:11 PM
Well if the economy only grew 3.6% then the growth in tax revenue wouldn't be due to a shift on the laffer curve, either.

In fact, it would indicate to me that neither deficit spending or lower taxes (the staples of supply side economics) seems to have done much to spur the economy.

And if so many people are moving into the top income brackets but the economy is about the same, that seems like it would indicate that there some people must be moving [i]down[i] in income.

oh, and when people cite the tax burden shifting to the middle class, they are talking about PERSONAL tax burden and they are right and Stephen Moore knows this.