Bush Plan Looks to Jumpstart the Economy
By George Anderson
President Bush introduced his administration’s plan for boosting the economy
yesterday with a $674 billion tax cut and credit program.
In announcing the plan, Mr. Bush declared, “The role of government is not to manage or to control the economy from Washington, D.C., but to remove obstacles standing in the way for faster economic growth.”
Elements of Mr. Bush’s plan include:
- Accelerating income tax reductions previously scheduled to go into effect in 2004 and 2006 to this year.
- Increasing the amount small businesses can write off for new equipment from $25,000 to $75,000.
- Eliminating the marriage penalty.
- Increasing the per child tax credit from $600 to $1,000.
- Eliminating tax paid on dividends.
Moderator’s Comment: What is your assessment of Mr.
Bush’s plan?
We agree with Mr. Bush that the role of the government
does not include managing the economy. The President’s plan, however, is more
likely to have political benefit than it is to stimulate the economy in any
meaningful way. Frankly, it would take a much bigger tax cut and overhaul of
the federal bureaucracy to have much impact on a $10-trillion economy.
[George
Anderson – Moderator]