Cornyn: Kirk has 2 takes on taxes
Posted on 10/10/2002 2:17:21 AM PDT by MeekOneGOP
Cornyn: Kirk has 2 takes on taxes
GOP hopeful assails ads on Bush cuts; rival won't pull commercials
10/10/2002
GOP Senate candidate John Cornyn on Wednesday called on opponent Ron Kirk to pull the plug on a TV ad, saying the Democrat is trying to dupe voters into believing he supports President Bush's tax cuts.
Mr. Kirk has said in recent days that tax cuts should be delayed until the economy improves.
"We've gone from a $5.5 trillion surplus to now a $300 million deficit," Mr. Kirk said Wednesday in Houston. "For at least the near-term future the more responsible thing is to make sure we get the budget balanced, we gain control on the spending and we hold off on those tax cuts until we have the money to pay for it."
The Democrat made similar statements Tuesday at a meeting of the Austin American-Statesman editorial board.
Mr. Cornyn, the state attorney general, said the former Dallas mayor's statements conflict with earlier assertions that he supports tax cuts.
"Ron Kirk's campaign is currently running a television commercial in which he assures voters that 'I support the president's efforts to lower taxes,' " Mr. Cornyn said. "I believe it is improper to give one position to an editorial board and broadcast a diametrically opposing position to voters."
As part of Mr. Bush's 10-year, $1.3 billion tax cut plan passed in 2001, taxes would be lowered again in 2003. Mr. Kirk says, that although he would have voted for the original tax cut plan, delaying the cuts would be wise. Mr. Bush and Mr. Cornyn say the cuts should proceed.
Mr. Cornyn said Mr. Kirk's stance amounts to a tax increase, because law mandates the future cuts.
The Kirk campaign said it plans to continue running the ad.
"If you listen to the political debate, both sides have reason to be critical and complimentary," said Ethan Harris, co-chief U.S. economist for Lehman Bros.
Mr. Harris said the 2001 tax cuts occurred at an appropriate time. "Most economists agree that tax cuts during a recession are a good idea," he said.
But Mr. Harris said future tax cuts, probably after 2003, could hurt the economy because the government would have to deal with a heavy deficit. "Every time the government borrows $100 billion, that's $100 billion less for the private sector," he said.
Throughout the campaign, Mr. Cornyn has used tax cuts and Mr. Kirk's evolving opinions on the issue to put his opponent on the defensive.
Early in his campaign, Mr. Kirk said the 2001 cuts were "devastating" and "irresponsible." He later said he would have voted for the cuts and supported making them permanent if the country had enough money to finance other things, such as the war on terrorism.
Mr. Kirk's position on tax cuts helped lead Mr. Cornyn to brand him as a "speckled trout" at the Republican Convention in June.
But Kirk campaign staffers Wednesday attempted to paint Mr. Cornyn as favoring a tax increase.
They cited an interview with Cornyn campaign spokesman Dave Beckwith on Tuesday by the University of Texas' student newspaper, The Daily Texan. Mr. Beckwith told the paper: "When times are good, you may want to raise taxes to slow things down."
A headline on a Kirk campaign news release soon blared: "Cornyn campaign unveils new economic plan: Raise taxes, run up the deficit, and do not balance the budget."
Mr. Beckwith said he was only discussing economic theory with a student. "The news release from the Kirk campaign reeks of desperation from a candidate who is desperately trying to change the subject from his own call for a tax increase," he said.
E-mail gjeffers@dallasnews.com
And regarding this:
Mr. Harris said future tax cuts, probably after 2003, could hurt the economy because the government would have to deal with a heavy deficit. "Every time the government borrows $100 billion, that's $100 billion less for the private sector," he said.
Harris obviously comes from the "it's the government's money" school of thought. As opposed to President Bush's and GOP's position that government revenues from taxpayers "is the people's money," not the government's.
I think I got all that right.....
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