Dear Editor:
Do you remember the annual deficits that burdened America and our economy for nearly 20 years? In 1997, I was one of those who voted for a balanced budget which ended the deficits while also providing a tax cut. When the House votes, unless we are careful, we could create another 20-year cycle of annual federal deficits with a tax cut that is too large and unfair.
President Bush has recently announced his $1.6 trillion, 10-year tax-cut plan. Under his proposal, 43 percent of his tax cut goes to Americans who earn more than $320,000 a year. What’s more, President Bush helps pay for his tax cut by using the $400 billion Medicare Trust Fund surplus that was supposed to be saved and put in a lockbox.
Why, without a budget for this year, are the President and the Republican House leadership forcing a vote this week on a 10-year tax cut that primarily benefits America’s richest? I believe that our nation can afford a tax cut, but we need to give more serious thought about how large it should be and we should make sure that working and middle class Americans get the most out of it.
There is a more responsible way to cut taxes. First, take both the Social Security and Medicare trust fund surpluses off the table. Then divide the remaining surpluses into thirds: one-third for tax cuts for everyone, but especially for working and middle class Americans, such as the marriage penalty tax, reducing the Social Security payroll tax and the estate tax. The second one-third should be dedicated to high-priority domestic needs such as school construction, a prescription drug benefit for seniors and paying off the national debt. The last one-third should be used to extend the lives of Social Security and Medicare and for a rainy day reserve fund.
We know, with certainty, that we now have a $3.4 trillion national debt and that tens of millions of Baby Boomers are about to retire and further burden Social Security and Medicare. What no one can be sure of is the extent or even the existence of any 10-year budget surplus.
Congress should not be ramming through a massive tax cut that primarily benefits the wealthiest, and one that we don’t know if our country can afford. Let’s instead work together across party lines, for a tax cut within our means that help everybody, but primarily working and middle class American men, women and children who need it the most.
Congressman Steve Rothman
Ninth District – New Jersey