Out of power for over a decade and impervious to the enormous positive economic benefits of pro-growth-supply side tax cuts, Congressional Democrats, itching to confiscate and redistribute as much individual income as possible have been very busy during the last 6 months proposing a plethora of new tax increases. Here is a partial list compiled from Ed Hyman’s ISI Group

A Senate Finance Committee plan to raise the federal tobacco tax by 61 cents to a total of $1 a pack to finance the Schip health-care expansion.

The so-called Blackstone tax on private equity partnerships that go public, raising their 15% rate to the regular corporate tax rate of 35%.

A tax increase on the “carried interest” of hedge funds and private equity to 35% from 15%.

Higher withholding taxes on the U.S. subsidiaries of foreign companies–in essence a tax increase on foreign investment in America.

Raise the capital gains rate to 28% from the current 15%.

Deny the domestic manufacturing deduction to oil producers.

A levy on oil and gas produced from deep-water leases in the Gulf of Mexico.

A tax surcharge of 4.3 percentage points on income of more than $500,000, which would take the top marginal rate to 39.3%.

President Bush will most likely veto these tax increases. But is there any doubt that President Hillary or O’Bama would eagerly sign them into law?

Most in the Democrat Party including most of the presidential candidates are so removed from reality that they believe that the “war on terror” is a bumper sticker slogan concocted by those evil neo-cons in the Bush Administration so they can colonize the world and pilfer oil. I think it is becoming increasingly obvious to Americans that there is good reason why Americans don’t trust Democrats with our national security-especially during war time. They are dangerously out of touch with reality.

And now during a time of significant and sustained economic growth resulting from the very same pro-growth Bush Tax Cuts that were almost unanimously opposed by the Democrats who claimed they would lead to financial ruin, the Democrats are once again demonstrating that they are impervious to basic economic empirical evidence that time and time again has proven that the most effective way to generate economic growth is to keep taxes low across the board.

It’s all the more remarkable given that federal tax revenues as a share of GDP are currently above their modern historical level. The latest budget estimate is that fiscal 2007 revenues will reach 18.8% of GDP, compared to the 40-year historical average of 18.3%. Tax revenues this year are rising by nearly 8%, following increases of 11.8% in 2006 and 14.6% in 2005. The budget deficit is down to 1.5% of GDP, and falling. But apparently Democrats still think Americans are undertaxed.

The 2008 Election will be about whether Americans want to return to the Jimmy Carter Era where we appeased and emboldened our enemies as many leading Dems are suggesting we do now or whether we agressively confront our enemies by staying on the offensive as Reagan did when he defeated the Soviet Union and as our current president is now attempting to do when Democrats are not directly sabatoging his efforts to protect America.

And the election will also be about whether Americas want to return to the stagflation and misery index (double digit unempolyment and inflation and falling wages etc…) of the high tax and government spending Jimmy Carter years. The Democrats have made it clear that if elected in 08′ that taxes will go way up across the board to fund a plethora of expanded government- but especailly a government run socialist health care system- which many believe would be the final nail in the proverbial coffin for America.

I hope Americans realize how close Democrats are to closing the deal in 08′. And if they win, I am not as optimistic as some that America would ever recover. I hope I am wrong. I pray that I am wrong.