HOYER PANS HOUSE GOP TAX PLAN

Questions President’s Call for Tax Cuts that Will Explode Deficit, Hurt Economy

For Immediate Release:

May 2, 2003

Contact:Stacey Farnen
202-225-3130

WASHINGTON – House Democratic Whip Steny Hoyer released the following statement today regarding the House GOP tax plan and President Bush’s Silicon Valley remarks:

“Democrats agree with President Bush’s comments today that our country needs a ‘bold recovery package so people can find work.’  But the tax proposals offered by both President Bush and House Republicans are not bold; they’re breathtakingly brash and irresponsible.

“Instead of putting people back to work, the Republican plan will put this country back in the red.  Further, this GOP plan would spend billions of dollars on a capital gains tax cut that will drain the Social Security and Medicare trust funds and add half a trillion dollars to the national debt.  What does that mean to the average American?  First, average Americans expecting to benefit from a capital gains tax should not hold their breath; only 2 percent of taxpayers have three-fourths of all capital gains.  Second, the additional debt means that we must spend billions more in interest on that debt rather than using those resources for homeland security, a prescription drug benefit for seniors and education.

“In sharp contrast to these GOP proposals, Democrats have offered a fast-acting, fiscally responsible plan that would provide tax cuts to hard-working American families who will spend it and businesses, and create 1 million new jobs.  With unemployment hitting a nine-year high of 6 percent, Democrats have the right plan for getting American back to work.

“The President recently indicated his continuing support for Federal Reserve Chairman Alan Greenspan.  I urge the President and the Republican leadership to take Chairman Greenspan’s advice and not crush any hope of a vigorous economic recovery by creating a mountain of debt that leaves us hard-pressed to meet the needs of this and future generations.”

 

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