This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. Find out more here.  
  • Delicious




White House Ponders Further Tax Cuts

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

19 August 2002

After President Bush's 'economic summit in Waco last week generated ideas for tax cuts including higher limits on the deductibility of investors' losses, and a reduction in double taxation of corporate dividends, Mr Bush explained his thoughts to reporters at a White House press briefing.

The President said loss deductions and dividend breaks are under review at the White House, along with capital-gains tax cuts and increased contribution limits for retirement-plan vehicles such as 401(k) accounts.

"I am going to analyze and think about some of the suggestions so that when I announce them, it will be well thought out, it will be a part of a long-term plan," he said. "But there are some interesting ideas, expensing losses, increasing expenses of losses, accelerating the 401(k) contribution limits. In other words, making it easier for people to put more money in their 401(k)s quicker."

Needless to say, Congressional Democrats complain that capital-gains tax breaks and increased contribution limits for 401(k) plans would favor the wealthy while doing little for working-class Americans.

On CBS-TV's Face the Nation on Sunday, Senator Jon Corzine (D, NJ) suggested further tax cuts should be considered only in the context of scaling back Mr. Bush's existing tax cuts for the wealthy, saying: "The fact is we need to put dollars in working Americans' pockets. We need to make sure that those people that have the largest propensity to spend go to the stores and ... drive this economy."

But Glenn Hubbard, chairman of the White House Council of Economic Advisers, said on the programme that further tax cuts actually might be the best way to spur the economy. "It's really important to restore confidence in long-term investing. And so there I think the 401(k) proposals that the president mentioned, the dividend and capital-gains tax changes that the president mentioned, all of those are very strong pro-growth policies, but he's made no decisions."

.

 

 






Write a comment