Bush, Gore Duel Over Tax Cuts
— -- Cutting taxes is a core component of Republican orthodoxy, but both major party candidates are focusing on tax relief in this year’s race for the White House.
Texas Gov. George W. Bush has made his proposal to slash federal income tax rates across all levels of income a centerpiece of his campaign. His plan would reduce tax rolls by $1.3 trillion over nine years, according to Bush campaign advisers, at a cost of $1.6 trillion to the government.
The Republican candidate would drop the rate for the top tax bracket from 39.6 percent to 33 percent while creating a new 10 percent rate for low-income families who now pay 15 percent. Middle income earners who now pay 28 percent and 31 percent would see their rates reduced to 25 percent.
Al Gore has derided the plan as a “risky scheme” that would squander the budget surplus on tax relief primarily aimed at the wealthy — his advisers claim 42 percent of the reduction would go to the top 1 percent of earners, those making more than $300,000 per year. The Bush campaign says the actual percentage is closer to 20 percent.
Targeted Approach
Drawing a contrast with his Republican rival’s sweeping approach, the vice president has offered a more moderate plan for targeted tax relief. Gore’s proposed reductions would total roughly $500 billion over a 10-year period and would include a deduction of up to $10,000 for college tuition, a $500 child care deduction for stay-at-home parents, and an assortment of credits for health care, retirement savings and other areas.
Bush has argued that Gore’s plan for targeted tax cuts “misses the target,” claiming that 50 million taxpayers would get no relief of any kind. The Gore campaign says only 30 million people would not receive a tax break under the vice president’s proposal.
Choice Cuts
An ABCNEWS/Washington Post poll taken in October showed voters evenly split over the competing approaches, with 48 percent supporting a large, across-the-board tax cut for all Americans, and the same percentage preferring a smaller tax cut targeted to lower and middle-income people.
The same survey showed Bush with a 10-point edge over Gore as the candidate voters most trust to hold down taxes.