Bush Scorns 'Second Guessers' Over Tax Cut

by Mike Godfrey, Tax-News.com, Washington

05 September 2001

Speaking at Labor Day rallies on the eve of the return to Congress, President Bush played down the importance of the budget dilemma facing the House, as Republicans push for deeper tax cuts and Democrats warn of impending Social Security doom.

'If Washington would only prioritize,' said the President, ' We've got plenty of money to spend in Washington, D.C.' However, it seems clear that the politicians are prioritising- it's just that their priorities are very different. Republicans in the House have been urging President Bush to support a capital gains tax cut which they believe will give the economy the boost that the previous tax rebates did not, but have faced fierce opposition from the Democrat camp. Despite this, it was revealed recently that Senate Republican leader, Trent Lott, is considering a proposal linking a capital gains tax cut to a Democrat-backed minimum wage increase.

Speaking on Monday, President Bush scorned what he called 'second guessers' on his controversial first round of tax cuts, and stated firmly that he will not consider tax increases as a means of easing the subsequent budget crunch: 'The best thing we can do is ask the question, how do we make sure our economy grows?' he said. 'I came up with this answer. Our economy can grow best when we give people their own money back.'

It was also revealed recently that Senate Majority Leader, Democrat Tom Daschle, is insisting that Bush rewrite his 2002 budget in the face of new, smaller surplus predictions, and a one-on-one meeting was tabled for Tuesday.

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