RSC
Information
About RSC
Conservative Activity
Issues Library
Legislative Bulletin
(analysis of legislation pending before the House)
Policy Brief
Press Releases
News Update
Values Action Team
Home
Subscribe to RSC
   E-Mail Updates

E-Mail RSC:
RSC@mail.house.gov
Neil.Bradley@mail.house.gov
links
Americans for Tax
   Reform

Citizens Against
   Government
   Waste

Citizens for a
   Sound Economy

Competitive
   Enterprise
   Institute

GOPUSA.com
The Heritage
   Foundation

National
   Center for Policy
   Analysis

National
   Taxpayers
   Union

Town Hall
 

In The News

"Young GOPers outdo Bush tax cut proposal"
THE HILL, February 7, 2001

By Kerry L. Kantin

A group of young Republican House members will announce today that they are preparing legislation that calls for a tax cut exceeding $2 trillion.

By comparison, President Bush will unveil his plan for a $1.6 trillion tax cut on Thursday, a proposal Democratic leaders consider excessive.

The House members supporting the $2 trillion proposal are freshman Reps. Todd Akin (Mo.), Jeff Flake (Ariz)., Melissa Hart (Pa.), Ric Keller (Fla.), Mike Pence (Ind.), Mike Rogers (Mich.) and Rob Simmons (Conn.). They are joined by two-term members Reps. Jim DeMint (S.C.), John Hostettler (Ind.), Paul Ryan (Wis.) and Pat Toomey (Pa.).

These young House members say Bush’s plan provides an excellent foundation, but with the most recent projections from the Congressional Budget Office, Congress can afford an even larger tax cut. Senior members including Rep. John Shadegg (Ariz.), chairman of the Republican Study Committee, and Reps. Steven Chabot (Ohio) and Henry Bonilla (Texas) have also indicated support for such a proposal.

Flake said the recent changes in the nation’s economic forecast— the slowing economy coupled with the recent projection of the federal surplus — allow for a larger cut than at the time when Bush laid out his proposal.

"The president proposed a terrific tax plan, but remember he proposed it over a year ago," agreed Toomey, who will be the bill’s chief sponsor. The circumstances argue for a larger tax cut."

Keller described the bill as "Bush plus," in that it builds on the provisions outlined in the president’s tax plan.

Toomey said the details of the legislation, of which he will sponsor, are not finalized, but its two main difference from the Bush plan are that it calls for the cuts to marginal income-tax rates to be phased in more quickly, as well as new provisions including a cut to the capital gains tax from 20 to 15 percent.

Bush’s tax proposal, which the administration projects will amount to $1.6 trillion over 10 years, will include an across-the-board cut in marginal income-tax rates and elimination of the marriage penalty tax and abolition of the estate taxes. It also calls for providing incentives for education savings accounts, increasing the child tax credit and allowing for new deductions for charitable giving.

"Our goal is to achieve a more ambitious plan," Toomey said. "We’re going to argue very strongly for our proposal."

Keller said the group of freshmen are positioning themselves front-and-center in the tax debate because of their conversations with voters on the campaign trail.

"This group is particularly close to the American people, because we’re right out of elections," said Keller.

Leadership aides say a final figure for the bill is yet to be determined, but it is likely to be in the $1.6 trillion range. Upon returning from the GOP retreat, Rep. Roscoe Bartlett (Md.) indicated that the House is looking at allocating one-third of the surplus for tax cuts.

"There’s no argument as to what we ought to do," Bartlett said. "It’s how we ought to do it."

A GOP leadership aide said the House tax bill will come in increments, beginning with Bush’s marginal rate cut, and the repeal of the marriage penalty and estate taxes will follow later.

The idea behind the incremental strategy is that it provides the opportunity for better communication with the American people, allowing Republicans to highlight the benefits of each tax cut.

Trent Duffy, a spokesman for the House Ways and Means Committee, said Committee Chairman Bill Thomas (Calif.) has not settled on a figure for the tax cut, but noted that House Republicans wholeheartedly endorse Bush’s plan.

"It’s rare that there is so much unison at this point ... the president’s tax proposal is largely the right approach," Duffy said, adding that members have differences "around the edges."

In a statement issued Monday, Sen. Charles Grassley (Iowa), chairman of the Senate Finance Committee, called Bush’s $1.6 trillion proposal a "reasonable level."

Moderates in both chambers, however, are skeptical of a tax cut too large.

"I don’t sense a sentiment for larger than $1.6 [trillion]," said Sen. Olympia Snowe (R-Maine), who serves on the Finance Committee. "It’s a hypothetical surplus, and we have to be careful."

House moderates say they support Bush’s plan, yet would like to ensure that the numbers work before endorsing any figures.

"I think the feeling is we should make sure we have numbers that the CBO [Congressional Budget Office] and the OMB [Office of Management and Budget] agree on," said Rep. Constance Morella (Md.). "I know the moderates want to be responsible."

Rep. Jack Quinn (N.Y.), one of four Republican dissenters to the $792 billion tax cut that passed the House in July 1999 along with Morella, said he plans to listen to the details of Bush’s proposal.

"Since that vote, by everyone’s account, that surplus has soared," Quinn said. "I am willing to give a listen to the details. My big thing is, I really want to know how a tax cut is going to affect the working people of Buffalo, New York."

lineblacklong.jpg (445 bytes)

To Read PDF files: Download Adobe Acrobat Reader
acrobat.gif (1692 bytes)