Daschle floats option to Bush plan
Posted on 01/25/2003 7:59:04 AM PST by MeekOneGOP
Daschle floats option to Bush plan
He calls for income tax cuts of $300 a person, aid to states, jobless
01/25/2003
CLEVELAND - Senate Democratic leader Tom Daschle called Friday for $300-a-person income tax cuts and billions in aid to cash-strapped states as part of an alternative to President Bush's economic-stimulus recommendations.
Mr. Daschle's proposals also include tax breaks to help small businesses afford health insurance premiums and aid for an estimated 1 million jobless people who have exhausted their unemployment benefits.
Mr. Daschle, D-S.D., announced his proposals in a speech before the City Club of Cleveland. While the proposals stand virtually no chance of enactment in the Republican-controlled Senate, they give Democrats an alternative to support during the coming debate over the president's recommendations.
"We need an economic plan with a single overriding goal of helping the economy, and helping the economy now," Mr. Daschle said. "The president's plan is not economic stimulus. More than 90 percent of the tax cuts wouldn't get to the taxpayers until after 2003."
The measures proposed by Mr. Daschle would expire after one year and carry a price tag of roughly $140 billion. Mr. Bush has proposed a $674 billion, 10-year plan.
Mr. Bush proposed the elimination of the tax on dividends and called for acceleration of some of the income tax cuts that Congress approved two years ago - two elements that Mr. Daschle and other Democrats have criticized. The items were not part of Mr. Daschle's plan.
"If we're looking at a short-term economic goal, if we want to get the biggest bang for the buck in the shortest period of time, the dividend tax cut is not it," Mr. Daschle said.
Mr. Daschle proposed a tax cut of $300 per adult and an additional $300 per child, up to two children per family. Adults would qualify even if they have no federal tax liability, as long as they pay Social Security and Medicare payroll taxes.
He also proposed additional tax breaks for businesses, including more generous depreciation designed to encourage companies to invest in new equipment. He also called for a tax credit to help small businesses pay for health insurance premiums and proposed a credit for businesses investing in broadband high-speed Internet equipment.
The aid to states and local governments includes about $15 billion with no strings attached, as well as about $25 billion more to be divided among Medicaid, education, homeland security and highway and mass transit construction.
Mr. Daschle's speech was part of a broader Democratic attempt to counter the administration's economic proposals. The party's leader in the House, Rep. Nancy Pelosi of California, proposed an alternative earlier this month, and she and Mr. Daschle plan a joint appearance Monday that their offices described as a "pre-buttal to President Bush's State of the Union Address."
White House press secretary Ari Fleischer dismissed Mr. Daschle's plan as one of many alternative stimulus proposals from Democrats. He declined to comment on the specific proposals made by Mr. Daschle, saying Mr. Bush intended to fight for his tax cut package.
Mr. Daschle proposed a tax cut of $300 per adult and an additional $300 per child, up to two children per family. Adults would qualify even if they have no federal tax liability, as long as they pay Social Security and Medicare payroll taxes.
Screw him.
So what happens if we don't help them? Education takes the big hit. Sure, I think that college tuition should be raised to offset some of the increase and I also think that states must cut spending in areas and raise their taxes. Cuts for the disabled and elderly should be off limits. I believe that before the Feds give any money to any state, that the state has a spending plan that must be approved and monitored to ensure deficits don't happen again.
That said, Daschle's tax cut is pitiful. I like Bush's plan except for the dividend proposal. Many dividends are currently not taxed because of the stocks invested in deferred retirement plans. The middle and middle-upper income brackets do not benefit as much from this proposal.
If Congress wants to help grow the economy, cut the marginal rates by 1.5 basis points, increase the personal exemption by $500 per person, and implement a tax credit for new job creation for corporations of $5,000 per 10% increase in job growth and $100,000 of new wages from the prior year. I would also consider an investment tax credit for certain equipment purchased by companies, as was done between 1975 and 1986.
The Federal Reserve has done all it can through monetary policy. We must now get more aggessive in fiscal policy to pull the economy out. Deficits will rise, but as unemployment decreases and payroll tax revenues increase, we can mitigate the deficit growth.
DASCHLE LEAVES OUT RETIREES...NO REFUND FOR THE OLD FOLKS...LOL
For example, look at the recent extension of jobless benefits from the federal trough. No strings attached so if a state like New York (D- Hilebeast and Schumer, AlGore 60%) is hostile to business and is driving out jobs, those of us living elsewhere get to subsidize the poor saps who don't have a paryer of finding a job locally. In other words, New York gets a free ride at our expense, doesn't feel the full pain of their horrendous choices at the ballot box, and does nothing to remedy the situation except stick the hand out for more.
California (D notsoFeinstein and Boxer, AlGore 53.5%) is just another example of a multiyear feeding frenzy, complete hostility to business and achievment, and now looking for money from the rest of us.
Take a look at this and guess where the money will go if the RATs have their way! 
And now Daschle proposes a $300 tax cut? Sheesh! Only stupid people support the Democrats.
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