White House Plays Down Republican Opposition To Tax Cut Plan

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

14 January 2003

Speaking in various interviews following the unveiling of President Bush's economic stimulus plan, US Commerce Secretary, Don Evans has downplayed the opposition of some moderate Republicans to the plan, arguing that the economic implications of the tax-cutting measures are clearly not being understood by objectors.

Not unexpectedly, Senate Democratic leader, Tom Daschle has opposed the $674 billion plan - of which all but $4 billion is earmarked for cutting taxes - arguing that: 'This is a stimulus for the rich and a sedative for the rest.'

However, according to an Associated Press report published on Sunday, Republican Senators John McCain of Arizona and Lincoln Chafee of Rhode Island are among a number of Republican lawmakers who are skeptical as to the degree of economic stimulation likely to be provided by the plan.

Speaking to CNN, the Commerce Secretary dismissed the specter of inter-party division on the issue, reasoning that:

'The President just laid out the plan this week, and so I'm not sure anybody has had the chance to fully go through...all elements of the plan and totally understand what it means to the economic strength of this country.'

However, former Treasury Secretary, Paul O'Neill has also come out in opposition of the plan, and has suggested that it is likely to have little or no effect on the economy. 'I would not have done it,' he announced on Sunday, suggesting that the money would be better spent on shoring up the Social Security system.

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