Tax-cut proposal fair to all brackets

Published 12:00 am Monday, February 12, 2001

George W. Bushs tax-cut plan, sent to Congress on Thursday, may not be the greatest model ever designed. But it certainly many degrees better than the sorts of proposal being promoted by those on the distant left of this countrys ideological spectrum, including the Senates minority leader, Tom Daschle. Instead of reasoned analysis, the South Dakota Democrat has engaged in envy-mongering, showing off a gadget-filled Lexus as an example of the amount of a tax break afforded the super rich under the Bush administrations legislation. Even though those in higher income brackets are the ones who pay most of the income tax in this country, the Daschle thesis seems to be that they should get little-to-no relief, because, after all, that would be unfair. It is a bit like arguing the unfairness of providing cancer treatment only to those who have cancer. The fact is, the Daschle thesis rests not on any calculation of fairness. It rests on the conviction that your money is not yours but the governments and that its allocation by the marketplace can never be so wise and pure as its reallocation by politicians in Washington. If you believe that to be the irrefutable case, check out the living standards and liberties of societies in which such philosophies are more fully in command. The Bush plan which does give significant breaks to those in the lower tax brackets and hardly lets the wealthy off the hook is far more likely than most of the proffered substitutes to stimulate an economy grown sluggish, and will be twice as effective in that regard if made retroactive to Jan. 1. Daschle notwithstanding, Bush has the support of many conservative and moderate lawmakers, including Kentucky Sen. Mitch McConnell. As Robyn Minor reported in Saturdays Daily News, McConnell says Bushs approach is solid and that Americans are ready for a significant cut in the amount of money they send to Washington. There is a growing feeling (among congressmen) that we are taking too much of our peoples money, he said. We hear a collective set of amens to that. Bush, which estimates his tax-cut plan would be worth $1.6 trillion over 10 years, is likely to compromise. That shouldnt be hard to do with Democrats, some of whom now favor a cut as high as $900 billion. He also should compromise with those Republican senators asking that he insert a mechanism to reduce the amount further if budget surpluses turn out to be less than expected. The president should continue to insist on a phased end of the federal death tax and an end as well of the so-called marriage penalty. He should be very cautious about those who want to tinker with the payroll tax and who would thereby tinker perhaps disastrously with other parts of the tax structure, the economy and the future of Social Security. It seems likely now he can get much of what he wants and what is good for America if he will negotiate as agreeably with Congress as has been his wont so far, but firmly when it becomes necessary. And it is necessary if the economy is to be stimulated.

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