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Daschle's plan does have some good elements. First, many states are in dire financial shape. We can all say, "screw them" because the legislators in those states increased spending bills when times were good, but the fact remains that California is facing a $35 billion shortfall, and $10 billion in Texas. Nebraska, my state, is facing a $650 million shortfall over 2 years.

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.

"First, many states are in dire financial shape. We can all say, "screw them" because the legislators in those states increased spending bills when times were good, but the fact remains that California is facing a $35 billion shortfall, and $10 billion in Texas. Nebraska, my state, is facing a $650 million shortfall over 2 years. "

Why should a dime of my money go to bail out states that elect politicians that promise them the moon. They elected the idiots that made the mess, live with it

The Only thing that might save us is that states MUST balance their budgets. If the feds bail them out, the states will just spend more. If Nebraska is $650 mil in the whole, cut your spending, don`t ask Uncle Sam to pick up the tab.