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Ignoring War

In case you were paying attention to the war, you might not have noticed the successful attempts today to pass over $700 billion worth of tax cuts and significant reductions in domestic programs.
The House today passed, by 3 votes, these cuts in taxes and domestic programs. The largest component the tax reduction is the elimination of the tax on dividend income. The Senate voted to remove $100 billion from the proposal, but also rejected an attempt to cut the proposed tax cuts to $350 billion.
*UPDATE: As of 3.26.03, the Senate has reduced the tax cut provisions to $350 billion and has passed the resolution. The resolution will now go to conference where it will be reconciled with the House version.
Republican John McCain was quoted as saying: “We cannot cut taxes and raise spending until we know what the cost of the war is.”
I agree.
It seems to me that, whether you are for or against these particular tax cuts, this does not seem to be an appropriate time to pass fiscal policy changes that will have a very significant impact on the budget for years to come, and especially when the costs of the war and reconstruction are unknown.
The attention of the US public is rightly focused on the war and our troops that are in harm’s way. Now is not the time for the US Congress to enact a large and controversial change in tax policy while the country is distracted.
Congress ought to sit down and turn on CNN like the rest of us.
House Approves Bush’s $726 Billion Tax Cut (washingtonpost.com)
Senate Votes to Shave New Bush Tax Cuts by $100 Billion (washingtonpost.com)

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Filed under: Economy, Fiscal Policy, Policy, Politics

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