Bush's plan gives the money back

Former Chief Justice John Marshall once said, "The power to tax involves the power to destroy." There's no doubt taxes are essential to a strong and respectable government. But as Marshall implied, government has a responsibility to handle that power properly.\nUnfortunately, the federal government, under President Bill Clinton, hasn't handled that responsibility with care. Tax rates, as a percentage of gross domestic product, are the highest they have ever been in peacetime.\nThe typical family now pays nearly 40 percent of its income in federal, state and local taxes. This is more than twice the rate paid by the typical family in 1955. And according to Congressional budget estimates, there is a projected surplus of $4.6 trillion during the next 10 years. \nTexas Gov. George W. Bush credits that surplus to America's workers, entrepreneurs and investors. In a sense, the surplus is merely an "overpayment" by American taxpayers. It makes sense that at least a portion of the surplus should go back to working Americans.\nThat is why Bush is proposing a bold tax plan to ensure continued prosperity -- and leave the Social Security surplus untouched -- but give that prosperity a purpose. His plan returns 25 percent of the projected surplus to be phased in during five years. The plan will replace the current rate tax structure of 15, 28, 31, 36 and 39.6 percent with four lower rates: 10, 15, 25 and 33 percent. \nThis would mean lower taxes for everyone, providing $460 billion of tax relief during five years.\nEconomic studies comparing countries during long periods of time have confirmed excessively large governments, and government distortion of markets, tend to lower economic growth.\nThe reason is clear: Large governments require high taxes, which distort markets. To ensure continued innovation, Bush believes the tax system should be revised to restore incentives for success. \nWith revolutionary technological change and a large surplus, the government should leave as many resources as possible with the entrepreneurs that generate new ideas, better jobs and greater wealth. Clearly, Bush's tax plan will ensure continued economic prosperity and further economic growth.\nThe historical, economic and logical evidence in support of Bush's tax plan is enormous. Of course, you don't have to take my word for it.\nAccording to USA Today, six Nobel Laureates and 294 leading economists endorse Bush's plan for tax relief. Even Alan Greenspan supports tax cuts instead of increased spending programs.\nAl Gore, on the other hand, opposes tax cuts on typical populist grounds, saying it helps the rich at the expense of the poor. But the highest percentage cuts will go to those taxpayers with the lowest incomes. According to Bush's Web site, a family of four making $35,000 a year will receive a 100 percent income tax cut. A family of four making $50,000 a year will receive a 50 percent cut. A family of four making $75,000 a year will receive a 25 percent cut.\nOverall, the marginal income tax rate on low-income families will fall by more than 40 percent, and six million American families -- one in five taxpaying families with children -- will no longer pay any income tax at all.\nGore's tax proposals stand in stark contrast to Bush's fair tax relief for all Americans. Gore estimates his tax cuts at $500 billion in 10 years. The highest figure the Senate budget committee could come up with for his plan is $170 billion (the lowest is $145 billion).\nWorse yet, Gore's proposals add at least $2.9 trillion to federal spending in the next 10 years; that's $2.9 trillion more than the projected increase. This will cost each family an average of $20,000, by Bush's estimates.\nAs the Wall Street Journal reported, "Imagine an expanding blob that would cover and squash the economy and you've got the drift of Gore's budget. The Gore blob is set to grow 13 percent larger." The National Taxpayers Union estimates it will create a deficit of $700 billion. That's a far cry from the tax relief hard-working Americans deserve.\nSome Democrats say Bush's plan "squanders" the surplus. The only proposal that "squanders" anything is Gore's, which proposes the largest increase in the size of the federal government since Lyndon Johnson's administration.\nMore than 200 years ago, people such as Marshall saw the power and responsibility of taxes. Bush has a vision for fiscal responsibility, and his tax relief will encourage economic growth into the 21st century.