Citizens for a Sound Economy would like to applaud the President’s March 27, 2001 speech in Kalamazoo, MI. To the local Chamber of Commerce, Bush voiced his support for both short-term and long-term tax cuts. He stated that he was in favor of a smaller, immediate tax cut because, “in the short term, the American consumer needs a hand.” He also supported a long-term tax cut because, as he noted, the economy needs, “more than a one time boost.”
While a short-term tax recovery package could have a positive short-term impact, the more important aspect of Bush’s tax cut is the long-term approach to returning surplus dollars to taxpayers. The economic downturn is only partial justification for tax cuts. America truly needs a tax cut because taxes are at a historic peacetime high and our government has more money than they know what to do with. As President Bush said, “The surplus is not the government’s money, the surplus is the people’s money.” Tax rates should therefore be reduced significantly and permanently to bolster long-term investment and economic growth. Bush recognized this principle when he said, “lower rates do not stimulate much activity unless people can rely on them for years down the road.”
Bush also reiterated the need to eliminate the death tax. “The death tax is unfair. It taxes a person’s assets twice,” stated the President. CSE fully supports Bush’s plan to completely do away with this tax as it would be an important step toward fundamental tax reform.