By Kerry L. KantinA 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 Bushs 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 nations 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 bills 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 presidents 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.
Bushs 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.
"Were 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 were 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.
"Theres no argument as to what we ought to do," Bartlett said.
"Its how we ought to do it."
A GOP leadership aide said the House tax bill will come in increments, beginning with
Bushs 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 Bushs plan.
"Its rare that there is so much unison at this point ... the
presidents 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 Bushs $1.6 trillion proposal a "reasonable
level."
Moderates in both chambers, however, are skeptical of a tax cut too large.
"I dont sense a sentiment for larger than $1.6 [trillion]," said Sen.
Olympia Snowe (R-Maine), who serves on the Finance Committee. "Its a
hypothetical surplus, and we have to be careful."
House moderates say they support Bushs 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 Bushs proposal.
"Since that vote, by everyones 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."