George W. Bush's transition team and House Minority Whip Tom DeLay may have had an unacknowledged motive to delay passage of the 2001 budget: An idea going around in December was to put off the budget bill until February so that it could be combined with repeal of the federal estate tax. Because budget reconciliation bills are virtually filibuster-proof in the Senate, that would probably ensure quick passage of the repeal.
Remember how George W. Bush regaled the voters last year with his criticism of Al Gore's "targeted" tax cuts? "You only get a tax break if you do exactly what the government tells you to do," Bush frequently carped. Well, Bush has now revealed the fine print of his own tax proposals--and lo and behold, those new details look remarkably like what Gore proposed.
Alan Greenspan has blessed a tax cut, the budget surpluses are said
to be bigger than ever, and Republicans control all branches of the
federal government. Are we ready to rumble with George W. Bush's
gigantic tax cuts? Can we cut taxes even more?
Senator Kay Bailey Hutchison, the Republican from Texas, recently bragged that she was the key instigator in persuading the Senate Finance Committee, as part of its pending "marriage penalty reduction" bill, to raise the income level at which a couple enters the 31 percent income tax bracket. The Finance Committee had already decided to raise the qualifying level for the 28 percent bracket for couples. But according to TheWashington Post, Hutchison insisted on a higher entry point for the 31 percent tax bracket, too, "so that the [marriage] tax relief would be extended to middle-income couples."
Don't be surprised if later this year the Congressional Budget Office (CBO) and the White House sharply raise their projections of future budget surpluses--perhaps by $1 trillion or more over the next 10 years, not even counting Social Security funds. Such good news, if it occurs, will cheer Republican tax cutters, especially George W. Bush, who are struggling to find the money to pay for the huge upper-income tax cuts they want. It will also encourage Democrats who want to invest more in public programs to improve education, health insurance coverage, and so forth.