The Digital Collegian - Published independently by students at Penn State
OPINIONS
[ Thursday, Feb. 15, 2001 ]

Bush's tax proposal offers us fuzzy math
 
Collegian's editorial opinion is determined by its Board of Opinion, with the editor holding final responsibility.
 
The members of the 2001 Spring Semester Board of Opinion are:
  • Heather Cook
  • Jon Fassnacht BIO
  • Cheryl Frankenfield BIO
  • Angela J. Gates BIO
  • Lily Henning BIO
  • Alison Kepner BIO
  • Patricia Tisak BIO
  • Tracy Wilson BIO
  • Alissa Wisnouse BIO
  • Susie Xu BIO

Bush went back to his roots last week when he announced a proposal for a sweeping tax cut that is the broadest and deepest cut in two decades. Bush's roots are in the oil wealth of Texas, the playing fields of elite New England schools and in the privileged world of a family where political success is less gained than it is inherited. And despite his pose as a "New Republican," Bush is sticking hard and fast to the old-school styles of the GOP.

As much as he might make a show of talking to the underprivileged of America, of claiming that he is fighting for the single mothers, the working poor, or for minorities, Bush has demonstrated that his true concern lies in making the rich richer.

There is a comedic side to the charade Bush has put on concerning his proposed tax cuts — but it's a dark comedy in which the poor and middle class are the brunt of the joke. Take, for instance, the projected savings under the Bush plan for a married couple with two children and a combined annual income of $20,000: a whopping $33 in the first year and $168 when the plan is fully phased in.

In stark contrast, a married couple with two children and an annual income of $1 million is projected to save $11,421 in the first year of the plan and will eventually save $46,094 when the plan is in full swing.

Bush seems cannily unaware of the irony of his actions, announcing the cuts as "a boon for the working poor." In other words, they don't offer any real relief from the burden of poverty.

The Democrats are correct in calling Bush's plan illusory for those in the middle and lower tax brackets. These earners do not usually pay high taxes in the first place but are more strained financially by Medicare and payroll taxes (which were not touched by Bush's plan) than they are by taxes paid on earned income. In fact, these families pay about $3,800 dollars annually for those taxes.

The Center on Budget and Policy Priorities estimates that "12 million families, both the poor and those just above the poverty line, are left out entirely" of this so-called across-the-board tax cut.

Furthermore, despite Bush's eloquent claim, "We need a tax relief now. In fact, we need a tax relief yesterday," the American people do not seem to be clamoring for a tax cut. A CNN/Time poll last week placed a tax cut below other concerns, such as Social Security and education, when asked how the surplus should be spent.

Even the rich object to certain parts of his tax cut proposal, especially the repeal of the estate tax.

"Repealing the estate tax would enrich the heirs of America's millionaires and billionaires while hurting families who are struggling to make ends meet," said William H. Gates Sr., father of Microsoft tycoon Bill Gates. Others who oppose the repeal of this tax include Warren E. Buffet, who ranks fourth on the Forbes magazine list of richest Americans; David Rockefeller Jr., former chairman of Rockefeller & Co.; and Ben Cohen, co-founder of Ben & Jerry's.

Bush's attempt at masking his loyalty to the rich is transparent. If this tax plan is intended to make a positive impact on all Americans, then perhaps Bush should check his "fuzzy math."

 


Send an Opinion Letter to the Editor about this article.


TOP  HOME
Search default: Exact phrase, not case sensitive.
Options: AND, NEAR, OR, AND NOT. Power search
Copyright © 2008 Collegian Inc.
Updated Wednesday, February 14, 2001  7:33:21 PM  -5
Requested Saturday, September 06, 2008  6:23:09 PM  -5