The American Spectator

Special Report

(Page 3 of 4)

Q: Do we really need more tax cuts after Bush's cut in 2001? br> A: Even with Bush's cut in 2001, federal taxes as a share of GDP will rise from 17.6 percent this year to 19.0 percent by 2010, according to CBO's baseline. Unless cut, taxes automatically consume rising shares of income. That occurs because income growth pushes people into higher tax brackets, and because more families are paying the "alternative minimum tax," a punitive add-on tax. Taxpayers need occasional tax cuts just to stay even with the government. /p> p> Q: With concern about the deficit, do Bush and Congress plan to cut spending? br> A: Just the opposite. Bush proposes to increase total federal spending by $102 billion in 2004, $125 billion in 2005, and similar amounts each year after. Whereas tax cuts are historically rare, large spending increases occur every year. Thus, even modest spending restraint creates large deficit reductions. /p> p> Q:

topics:
Taxes, Business, Federal Budget