Lawmakers pick apart Bush tax cut plan

WASHINGTON (CNN) -- Supporters and opponents of President Bush's tax cut plan took turns spinning the bill Saturday, debating the fairness and affordability of the $1.4 trillion, 10-year plan.

In the weekly Democratic Party radio address, Sen. Kent Conrad of North Dakota warned the tax cut would jeopardize the growth of the economy and take money from crucial government programs. He said it was based on uncertain projections that predict anything from a $50 billion deficit to a $1 trillion surplus.

"So let's be very clear," he said. "All these words about billions of dollars of surpluses for years and years to come may be just that -- words. We shouldn't bet the farm, or the future financial security of our nation, on projected surpluses that could vanish as fast as they appeared."

Conrad said a tax cut should not come at the expense of programs such as Social Security or Medicare, or take funds from education, prescription drug coverage or national defense. Doing so would jeopardize the nation's economic progress, he said.

But speaking from his home state of Georgia, Democratic Sen. Zell Miller supported the Bush plan. "American taxpayers have overpaid the government," he said, "and it's time they got a refund."

Miller appeared with Sen. Phil Gramm, R-Texas, his co-sponsor of the tax cut bill in the Senate, at a news conference in Columbus, Georgia.

The White House says the president's plan would earmark $2.5 trillion toward bolstering Social Security and paying down the national debt, leaving $3.1 trillion for other purposes, such as tax cuts.

Conrad said Bush's plan was "just not fair" because it benefits most the wealthiest taxpayers.

"Under the president's plan, a person earning $900,000 a year gets a $46,000 tax cut, enough to purchase a brand-new luxury car," he said. "But a family with two kids earning $30,000 a year would get about $200, enough to get a tune-up."

Miller, who broke ranks with Democrats by supporting John Ashcroft for U.S. attorney general, examined how the tax cut could benefit a single mother with two children.

"Under the current rate, that single mother begins paying taxes when she earns $21,300," Miller said. "Under the Bush plan, she would not begin paying income taxes until her earnings reach $31,300. That leaves extra money in her pocket for school clothes or for the heating bill."

White House officials also say the tax cut would double the child tax credit to $1,000, reduce the tax penalty on married couples and eliminate the "death tax." An average family of four, earning $40,000 a year, would save $1,600 in taxes under the president's plan, White House officials have said.

But Conrad said a true balanced plan is one put forth by Democrats. "We will cut taxes for all Americans," he said, "but we'll focus the biggest share of the benefits on middle- and lower-income families who really need the help."

Miller argued against excluding any segment of society. "American taxpayers -- rich and poor -- are much better judges of how to spend their money than we are," he said.

Major Garret: Bush Tax Cuts
February 5, 2001

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