Posted: May 16, 2003
CUT IS THE WRONG WAY
WASHINGTON - Sen. Tom Carper
issued the following statement about the $350 billion tax cut plan
approved Thursday by the Senate along a mostly party-line vote.
"The Republican tax cut plan
would take the country in the wrong direction by increasing deficits
and adding to the debt burden of America's future generations," said
Carper. "The Congressional Budget Office earlier this week said the
nation's deficit would reach nearly $300 billion this year, the
largest ever on record. Some forecasters have said it could go as
high as $400 billion.
"This tax cut, regrettably,
will only make the deficit go up even more. Included in the bill is
an elimination of the estate tax, but in order to mask the
provision's true cost, the dividend tax is restored in 2007. It's
the same accounting trick that was used in the tax bill of 2001,
when Congress voted to eliminate the estate tax but didn't make it
permanent. This kind of smoke and mirrors hurts our long-term
fiscal health and it's not good for business, which needs certainty
in the tax code to make their long-term investment decisions.
"It's irresponsible to
consider passing such a large tax cut at a time when our country's
deficits are at an all-time high. Indeed, next week, the Senate
plans to vote for nearly a $1 trillion increase in the nation's
borrowing authority without having a plan in place to bring down our
deficits and restore a balanced budget.
"Instead of passing tax cuts
that would likely have little positive effect on the economy - and
are designed to disproportionately benefit only a small number of
Americans -- we should instead be looking for ways to reduce our
debt and restore fiscal sanity."
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