Bush's Tax Cuts Will Benefit World Economy, Says Snow

by Leroy Baker, Tax-News.com, New York

10 February 2004

President Bush’s tax cuts will benefit the world economy in addition to the domestic economy, US Treasury Secretary John Snow told the Group of Seven finance ministers in Florida last week.

Responding to international criticism of the current administration’s economic management, and particularly the potential fallout from the projected $500 billion budget deficit, Snow argued that expansionist policies are the solution to sluggish rates of growth.

"The focus on the conference, from my point of view, will continue to be growth and what we as ministers can do to build support for higher growth in our domestic economies of our countries and the economies of the developing world," Snow commented prior to a meeting with Japanese Finance Minister Sadakazu Tanigaki.

The Treasury Secretary added in a statement: “The President's tax cuts have worked. They provided the stimulus that was necessary to turn the economic ship around and they are now encouraging and allowing for the economic growth that is continuing into the future.”

He continued: "We are pleased in the U.S. that our tax reductions have begun to have real effects in producing higher growth rates in our economy and that will benefit the world economy, and as Japan, the E.U. and France grow faster, that will help us."

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