Bush Tax Cut = Working Families Pay
From Gerald W. McEntee — President
Congress recently gave thumbs up to the Bush Administration's 11-year, $1.35 trillion tax package — the biggest tax cut in a generation. The bill passed the House by a vote of 240 to 154, while the Senate passed it by a vote of 58 to 33.
AFSCME has known all along that the bill unfairly benefits wealthy people, while jeopardizing programs and other resources that help working people. Now, our fears have come true, and the final bill could spell disaster for vital national programs, including education and health care.
TEN BUCKS A WEEK. Under Bush's massive, irresponsible and unfair tax cut, the very wealthy could receive refunds of as much as $53,000 on their tax returns. In fact, if the President's plan had been in effect this year, he himself would have saved $35,000, while Vice President Cheney would have saved a whopping $2.4 million. On the other hand, people with annual salaries between $27,000 and $44,000 will get less than $10 a week, and millions more will get nothing.
Saddest of all, the plan will consume more than our nation's projected budget surplus and destroy existing programs designed to help middle- and low-income Americans. By signing that bill, Bush has paved the way for Medicare cuts, jeopardizing seniors' access to quality health care. And he has put Social Security at risk, making it more difficult for hard-working men and women to achieve well-deserved retirement security.
While lowering taxes for the rich, the bill raises barriers between working families and high-quality health care, reliable child care, good schools, affordable prescription drugs and the enforcement of workplace safety. In addition, it closes the doors of opportunity for workers needing job training and skills assistance.
And the reason is painfully simple. Much of our nation's projected budget surplus won't actually exist for several years. Yet the President has pushed a reckless tax plan through Congress, while simultaneously failing to include in his budget wallet-busting items like a $325 billion increase in defense spending. The President's shortsightedness leaves little money to keep Social Security and Medicare steady, stable and strong, or to feed hungry families.
That's like applying for a mortgage, then spending all your money decorating the house before the loan has been approved and the down payment has been made.
NO JUMP START. Contrary to what the President says, this bill will not jump-start the nation's economic engine. In fact, more than 100 economists have said that his tax cuts would have little impact on the economy in the short run and would result in even worse budget shortfalls down the road. To make another comparison, the tax cut is the equivalent of a car running on empty, with inadequate oil as well.
All of that because the man who ran as a "compassionate conservative" prefers to cater to rich special interests instead of working for the everyday Americans he says he wants to serve. Perhaps this is the real meaning of compassionate conservative: When it comes to business, I'll be compassionate; when it comes to working families, I'll be conservative.
President Bush should be exploring ways to spread the prosperity of the last eight years to more Americans, not widening the gap between wealthy people and working people. Clearly, that is not what Americans want. Poll after poll shows that when asked about their priorities, most people say they want to shore up Medicare and Social Security, improve schools and get an affordable prescription-drug program. For working families, these ideals are much more than "programs." They are a lifeline. They help to level the playing field so that everyone — wealthy or not — has a seat at America's table and a shot at the American dream.
Perhaps the most telling detail about the President is an interview he gave to a group of reporters while campaigning last fall. They asked him about warnings that the then-$2.6 billion tax cut he proposed might leave his own state's budget gasping for breath. The governor's response? "I hope I'm not here to have to deal with it. I'm seeking another office."
Well, Mr. Bush, working families across the nation are going to work hard to make sure that you'll be seeking another job in 2004.
