Magazine article Nation's Cities Weekly

Candidate Dole Puts Tax Cut Ahead of Deficit Reduction

Magazine article Nation's Cities Weekly

Candidate Dole Puts Tax Cut Ahead of Deficit Reduction

Article excerpt

Robert Dole, calling himself an "agent of change" reversed his nearly two decades of opposition to supply-side tax cuts last week. The apparent Republican presidential nominee called for nearly $600 billion in tax cuts aimed at spurring the economy. Dole promised his plan would "balance the budget, cut taxes and remove the dead weight of government to unleash the full potential of the American people once again. "

Saying he would "finish the job Ronald Reagan started so brilliantly," Dole proposed the tax cuts which he anticipates will lead to greater federal revenues boosted by a more robust economy.

The Dole Package

Dole pledged to cut federal income taxes by 15 percent, which he estimated would increase the federal deficit by $406 billion. In addition, he proposed a 50 percent cut in the capital gains tax, a $500-per child tax credit, expanded individual retirement tax breaks (IRAs), education tax breaks and a $27 billion tax break for some Social Security recipients.

To pay for the tax breaks, Dole called for $183 billion in domestic discretionary spending cuts, and he proposed to auction off $34 billion more in spectrum.

Dole vowed his plan would not stop with the massive tax cuts and effort to balance the budget, but said he would downsize the Internal Revenue Service as a prelude to replacing the entire federal tax code to make it "simpler, fairer, and flatter."

For investment in cities and children, Dole proposed a demonstration project for opportunity scholarships, saying that, under his plan, low and moderate income parents would be permitted to deduct interest on student loans, and he promised a $12 - $15 billion opportunity scholarships program in inner cities: "We're ready to spend 12 to $15 billion to see if it works and give it to the states. …

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