Bush tax cut plan exaggerated, says Tobin
By Joe Baker
By Joe Baker
President-elect George W. Bushs proposed tax cut is being distorted by the mainstream press, according to Jim Tobin, president of Taxpayers United of America.
Tobin said Bushs planned cuts are smaller than they should be, despite claims to the contrary.
Weve all heard this great hue and cry from the Democrats and the media warning that Bushs enormous tax cut will harm the economy, Tobin said. Nothing could be further from the truth.
Tobin declared available economic evidence shows tax cuts will help bolster the economy. He said if income tax rates are lowered, there will be greater incentive for businesses and individuals to produce more.
The Gross Domestic Product will go up as a result, and federal revenue will be higher than it would if the government misses this opportunity and lets the economy go downhill, Tobin asserted. The current Social Security surplus will be well protected by this economic growth.
Secondly, all of the glowing reports about the growing budget surplus assume that Congress can resist the temptation to spend the surplus on pork, Tobin added. Experience tells us that politicians cant be trusted to do that. This is why Federal Reserve Chairman Alan Greenspan has said hed rather the surplus went to tax cuts than further spending, Tobin stated.
It was Greenspan who showed congressmen how to create the surplus in the first place. The budget surplus exists because the people are overtaxed, Tobin concluded. That money rightfully belongs to the taxpayers, and it will do the economy much more good in their hands than in the claws of the pork-happy politicians on Capitol Hill.
Bush proposes a $1.3 trillion tax cut. Spread over 10 years, that amounts to .9 percent of the GDP, according to Tobins figures. Thats about one-fourth the size of President Reagans tax cut in 1981. Tobin said federal taxes have been boosted so much since 1990 that the average taxpayer would just break even after the first five years of the Bush plan.
According to the National Taxpayers Union, the total tax cut after five years of the plan would be just under the combined sum of George Bush, Sr.s 1990 tax increase and Bill Clintons 1993 tax hike.