Does the U.S. Need a Huge Tax Cut?

• Position: Brief Article

President Bush wants to cut taxes by $1.6 trillion over 10 years

YES A warning light is flashing on the dashboard of our economy. And we can't just drive on and hope for the best; we must act without delay....

Today, I am sending to Congress my plan to provide relief to all income-tax payers, which I believe will help jump-start the American economy. We must give overcharged taxpayers some of their own money back....

My plan is directed toward individuals and small businesses. It offers relief for everyone who pays income taxes, and it keeps our national commitments to Social Security and debt reduction.... If we pass this tax relief in a timely manner ... we will return $1,600 to the typical American family with two children. Working families earning between $35,000 and $75,000 will keep anywhere from $600 to $3,000 more each year.

With this tax relief, families can save, or pay off debt, or pay for higher energy bills.... It is good for our nation's economy. It means greater demand for your goods and your services at a time when demand may be slowing....

Our economy faces this challenge: Investors and consumers have too little money, and the U.S. Treasury is holding too much. The federal government is simply pulling too much money out of the private economy, and this is a drag on our growth.

... Our Treasury is full and our people are overcharged. Returning some of their money is right, and it is urgent.

--PRESIDENT GEORGE W. BUSH February 8, 2001

NO I feel strongly that a tax cut of the magnitude proposed is a serious error.

The President's tax cut would cost roughly $2 trillion over 10 years--$1.6 trillion in tax reductions themselves, plus $400 billion of interest...