ICAN - Economists Critical of Bush Tax Plan Press Release

Economists Critical of Bush Tax Plan Press Release

For Immediate Release: May 8, 2003
Contact: Deb Stehr 712-657-2915/712-830-2441

National and Local Economists, Iowa Leaders Critical of Reckless Bush Tax Plan
Bush Plan is “Destructive Fiscal Policy”

Des Moines, IA - National economist Larry Mishel of the Economic Policy Institute joined Peter Fisher, Professor of Urban and Regional Planning at the University of Iowa and other Iowa leaders of the Fair Taxes for All Coalition in opposition to President Bush’s irresponsible tax plan. The Bush administration tax proposal would take resources from health care, education, social security and other vital programs to give massive tax breaks to the wealthiest Americans.

“After looking at the numbers, it’s clear that the president’s tax proposal will not rejuvenate our economy,” said Larry Mishel. “It is a reckless giveaway to millionaires and will not create jobs. Additionally, it will worsen the long-term budget outlook and reduce the government’s ability to finance Social Security, Medicare, investments in schools, health, infrastructure and basic research. Simply put, this is terribly destructive fiscal policy.”

“The Iowa economy surely needs a boost, but the proposed federal tax cuts are going to do the state more harm than good”, said Peter Fisher. “The package is very poorly designed as a stimulus, and could actually cost jobs in the long run, as deficits and interest rates rise. Cuts in federal programs to Iowa could total as much as $19 million a year, and the dividend exclusion that the President wants would reduce Iowa income tax revenues by about $57 million each year. To add insult to injury, dividends exclusion would make borrowing by local governments more expensive, impeding efforts by cities to provide the services needed to support economic growth.”

Iowa has lost 36,400 jobs since the beginning of the Bush Administration according to recent data from the Bureau of Labor Statistics.

Bush’s tax breaks for millionaires also force cuts in federal aid to health care, education and other vital state services. Some of the cuts Iowans can expect to face over the next ten years include:

Health care-cut $24 million
Education, training, reemployment, social services-cut $34 million
Environmental and natural resources-cut $44 million
Basic supports for low income families-cut $18 million
Transportation-cut by $32 million
Police and security-cut by $19 million
Agriculture-cut by $24 million

Iowa Citizen Action Network is a member of Fair Taxes for All, a massive coalition of over 260 national, state and local coalitions, together representing millions of Americans who have pledged to defeat the Bush Administration’s tax proposals that would take resources from health care, education Social Security, and homeland security to give massive tax breaks to the wealthiest Americans.

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