NCPA Says America Needs Tax Cuts, Not War

by Mike Godfrey, Tax-News.com, New York

03 October 2001

The National Center For Policy Analysis has issued a warning to US President George Bush, cautioning him not to neglect domestic economic affairs in his focus on international coalition building.

The NCPA argues that although the Second World War ended the Great Depression, there is nothing stimulative about war as such, and that furthermore, in times of crisis, taxes are sometimes sharply increased, economies become increasingly regimented, and investment is distorted.

The body is calling instead for the US government to concentrate on providing more general domestic economic stimuli, as opposed to the relief schemes being demanded by various industries, as it reasons that although relief for affected industries, such as the airlines, is justified it has little to do with restoring economic vigor in a more general sense. 'The money government pays in relief has to come from somewhere,' the Center observed in a report released earlier this week, 'and robbing Peter to pay Paul doesn't make anyone richer.'

Suggestions for kick-starting the US economy included a more imminent cut in the marginal taxation rate, and cuts in capital gains taxes.

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