Rep. Armey cites Bush tax plan as key to avoiding recession

WASHINGTON (CNN) -- House Majority Leader Dick Armey, R-Texas, said Saturday that a $1.3 trillion tax cut proposed by President-elect George W. Bush could help stave off a recession predicted by some economic experts.

"Will there be a recession?" he asked in the weekly GOP radio address. "There doesn't have to be. By cutting taxes and reducing federal regulations that stifle economic growth, we can ensure a strong economy and a prosperous America for many years to come."

He then took aim at some Democrats' calls for more modest, targeted tax cuts. "An across- the-board cut helps us all," Armey said. "It does this by providing new incentives to work, save, invest, grow and hire."

Armey said economic indicators confirm that Bush will inherit an economic slowdown when he takes office next month, citing worldwide interest-rate increases over the last 18 months, the price of oil nearly doubling since early 1999 and a threefold increase in natural gas prices over the past year.

He said steep declines in the stock market have affected Wall Street investors and "average working Americans who are saving for their futures" with 401(k) plans and mutual funds.

Across-the-board cuts, he said, would "get the surplus out of Washington and into our hands."