Paulson on taxes

In a piece on the Wall Street Journal editorial pages today, Treasury Secretary Henry Paulson did something that previous Bush Treasury secretaries have not done: speak out, take a stand, advocate for a Bush economic policy. Previous secretaries were either timid or distracted, which didn't serve the administration well.

The subject today for Paulson primarily was corporate taxes but what he proposed would affect other forms of doing business (partnerships, S corporations and unincorporated businesses) as well as individual investors. At just the right time, Paulson's arguments take the wind out the sails of Democrats, who plan to raise taxes.

Paulson is right, of course, in saying that taxes on businesses and investors must be lowered to maintain our competitiveness internationally and to preserve our economy. Paulson is right in saying that workers depend on businesses and investors for jobs, whether those workers are employed by businesses, nonprofits or governments, because business earnings and investment returns finance nonprofits and and governments through contributions and taxes, directly or indirectly.