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News :: Miscellaneous |
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Rebate & Switch: Shriveling Surplus Proves Tax Cut Irresponsible |
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by Betsy Leondar-Wright, UFE
(No verified email address) |
23 Aug 2001
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BOSTON - August 22 - Evoking memories of the deficit-inducing 1981 Reagan tax cut 20 years ago this month, the White House today released surplus projections showing that its $1.35 trillion tax cut risks unnecessary deficits and squanders a chance to fund unmet social needs. |
By using dubious accounting tricks and over-optimistic economic growth projections, the Office of Management and Budget predicted that Fiscal Year 2001 will end with a $158 billion surplus, only $1 billion of it outside the Social Security and Medicare trust funds. Next Tuesday, the Congressional Budget Office will almost certainly come up with a much smaller number.
"Would the Bush tax cut have passed Congress knowing what we know now, just three months later?," asks Chuck Collins, program director for United for a Fair Economy (UFE). "Itšs not too late to scale it back. Support is growing for repealing the most expensive and unfair parts of the tax cut, such as the top rate reduction and the estate tax repeal."
These budget numbers are a dramatic change from the White Housešs forecast in April (not coincidentally, during the tax cut debate) that the government would take in $281 billion more than it would spend this fiscal year.
"The real test of integrity comes in someonešs actions after they make a mistake. President Bush should stop the shell game and admit his tax cut was too big," says Betsy Leondar-Wright, UFEšs Communications Director. "My fatheršs nursing home is paid for in part by Medicare; my family shouldnšt have to worry about who will care for him if President Bushšs reckless actions jeopardize Medicare benefits." Other analysts project a much greater deficit, such as the half a trillion dollar deficit over 10 years forecast by the Concord Coalition. According to the Center on Budget and Policy Priorities, scaling back the Bush tax cut by just 40% could eliminate the entire long-term deficit in Social Security.
To date, almost 1,400 people have signed United for a Fair Economyšs on-line petition against the tax cut at RejectTheRebate.com, donating over $180,000 from their rebates to tax fairness and other causes. The numbers of rebate rejecters grows daily as more rebates arrive and the surplus news worsens. |
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