You don’t have to read just “the biased liberal news media” to understand the difference between the tax policies of Republicans and Democrats—the conservative press, when it is advising its investor readers, tells it like it is.

From Barron’s, February 16.

Another Whack

Undaunted by deficit hawks, Bush plans
to keep chopping taxes. Can he succeed?

…You might think the president's relentless tax cutting is aimed at generating bigger refund checks and goosing the recovery—because that's what Bush says it is about. Certainly the cuts haven't hurt the economy. But if you look at the bigger picture, there is strong evidence that Bush also is engineering a fundamental change in the tax system. By gradually taking capital out of the tax base through reductions in levies on dividends, capital gains and inheritances, Bush is transforming the income tax into a pure tax on wages.

If Bush can finish his work, the capital gains, dividend and estate taxes may disappear entirely. He will be hard-pressed to get many new tax initiatives through Congress this year, because of concerns about the burgeoning budget deficit. But an estate-tax overhaul, for one, could well be enacted in 2004 if Bush will compromise, a key senator tells Barron's. Bush will almost certainly require a second term to bring his tax plans to fruition, but only a few more big changes are needed to pull off this policy coup….

"It's the most serious attack on the progressive tax since it was introduced" in 1916, claims Joseph Thorndike, a historian who works for Tax Analysts, publisher of the Tax Notes newsletter….

MASSACHUSETTS SEN. JOHN KERRY …, has been vocal in promoting some targeted changes in the code that would give breaks to the middle class at the expense of multinational corporations and affluent individuals.

His most ambitious proposal would change the Constitution to give the president line-item veto authority. Kerry would use this sweeping budget power to "reduce corporate welfare and excessive spending." He'd ask a commission to determine just which budget items constitute corporate welfare.

Kerry says he would "repeal Bush's special tax breaks for Americans who make more than $200,000."… Kerry says he would preserve the child tax credit and reductions in the marriage penalty and marginal rates that were part of the Bush tax plans -- but only for the middle class, which he has yet to define. He would eliminate last year's reduction in capital gains taxes to 15%, but would institute a lower rate in both the capital gains and dividend levy for the middle class.

He would propose a new tax credit to encourage U.S. manufacturers to keep jobs here. Companies that created new jobs in excess of a 12-month average would receive a refund of payroll taxes for the new employees for two years.

Kerry also is pitching a "College Opportunity Tax Credit," which assumes that the typical college tuition and fees at a public university is just $4,000 a year. Students annually would get a 100% tax credit on the first $1,000 of tuition and a 50% credit for the next $3,000, or $2,500 a year.

     This is as clear a description of the difference between those who believe in aristocracy (Republicans) and those who believe in a true meritocracy (Democrats)—as you’ll find.

     Republicans obviously believe that wealth should be inherited, and that non-work (investing) should be more financially rewarding than work. To Republicans, the economic system is designed entirely to be beneficial to the established wealthy—and the only wealth to be shared with workers is that which “trickles down.”

     This excerpt was presented for purposes of criticism only. Those who are interested in the investment implications should read the entire—very extensive—article.