United States Treasury Secretary John Snow has urged lawmakers to continue
carrying through the Bush administration's commitment to low taxation whilst
at the same time maintaining fiscal discipline to avoid excessive budget deficits.
In prepared remarks for a speech to the Center for National Policy, Mr Snow
stated that low taxes and a strong government balance sheet are not mutually
exclusive, observing that: "The two go hand in hand".
Whilst acknowledging the fact that there are "clearly legitimate"
spending needs, particularly in the wake of recent devastating natural disasters,
and the need to protect the homeland, Mr Snow went on to warn that excessive
deficits will undermine growth and US competitiveness by asserting upward pressure
on interest rates.
"Fiscal responsibility gives us a competitive edge, and that is very much
on the minds of Administration leaders as we look at our budgets to tightly
control spending," he noted.
However, Snow went on to argue that reining in the deficit should not come
at the price of higher taxes.
"President Bush pushed Congress to give Americans tax cuts when our economy
was struggling, and the economic results have been outstanding – strong
GDP growth and job creation. Our citizens, and therefore our economy, responded
in a fundamental way to a lighter tax burden. And the result of their efforts
has increased the revenues flowing to the federal government," he observed.
"That is why it would be exactly the wrong time, as some have proposed,
to raise taxes," he went on to note.
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