Florida Democrat Proposing To Repeal Portion Of Bush Tax Cut

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

18 July 2003

Speaking to the press via a conference call this week, Democrat presidential hopeful Bob Graham revealed that he would repeal much of President Bush's tax cutting program, which he considers favors the wealthy, and would redirect cuts towards taxpayers in lower and middle income brackets.

Graham has proposed the repeal of about $262 billion of the recently enacted tax cuts, and has announced that he would replace them with $523 billion of tax relief for working and middle class taxpayers, most of which would take effect within the first two years of a new Democrat administration. Mr Graham also announced his intention to improve the tax collection system with a view to increasing the tax revenue stream by $28 billion annually.

"If we don't have a strong economy, we aren't going to be able to make the sustained investment, whether it's in health care or education or environmental protection or even our national security," the Florida Senator told reporters as he prepared to release a fifty page document outlining his taxation policies.

However, whilst Graham said that he would scrap the temporary tax cut on share dividends and capital gains, he revealed that he would keep much of the recently enacted tax package, including the $1,000 child tax credit, tax relief for married couples and the abolition of tax on inheritances up to $3.5 million.

Although the Florida Democrat has proposed increased spending on education, transportation and homeland security, he claims to be able to balance the budget within five years, based on the assumption that an additional $375 million will flow into the Treasury as a result of increased economic growth.

Criticising the current administration for allowing the budget deficit to balloon to a projected $455 billion this year, Graham announced that the present fiscal situation "represents an economic dagger pointed at the backs of all Americans," adding, "it is immoral to be asking our children and grandchildren to pay that cost."

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