Washington — Knock, knock. Is anybody paying attention out there? The president is correct in calling for a large tax cut, but for those of us who champion the nation's working people, it is simply misplaced. Why is President Bush proposing this? Apparently he believes that money put into wealthy hands will do the most good. It is reminiscent of President Reagan's "trickle-down" supply-side theories. The facts are otherwise.
In fact, the wealthy already have all the cars they want. Their tax refunds will most likely go into interest-bearing instruments, which do not benefit the economy as much as consumer spending does. And we should remember that consumer spending has been the basis for the decade of economic boom.
We suggest either of the following allocations for a tax cut:
1. End the payroll taxes (FICA). Social Security and Medicare taxes take 15.3 percent of the first $72,600 of income, making it the largest single tax paid by 70 percent of all taxpayers. And remember, while it appears that your employer is paying half of the FICA, it is simply money that would otherwise go directly to you. And FICA is not paying for your retirement; it is paying for the previous generation's retirement. As such, it ought to be paid out of general revenues, not by a dedicated tax imposed on middle- and low-income earners.
2. Eliminate the 15-percent bracket and remove from the tax rolls anyone who was paying it. Not only would this be equitable, it would not even take up the entire $1.6 trillion proposed cut. This would allow us to raise the base for filing a tax return even further, to around $30,000 or more. After all, how much sense is there in taxing people who are not making enough money to properly feed, clothe and house their families?
Wake up, America, the Bush tax cut is Robin Hood in reverse.
FOB in the White House
There is an ironic White House secret, sources tell us, that will alienate Democrats and Republicans alike who are fed up with Bill Clinton. The secret is that President George W. Bush appears to be the last FOB Friend of Bill, as such friends were called in the White House.
Both men have sewed wild oats well beyond their youthful indiscretion days. But Bush was turned around by his wife, Laura, even to the point of making him righteous. The good news for Clinton is that Bush's righteousness did not become self-righteousness. Instead, Bush fits more the mold of the prodigal son who has seen the error of his ways and looks upon other sinners from the vantage of "there, but for the grace of God, go I."
Veep in waiting
The attention devoted to Dick Cheney's latest heart episode is a commentary on his importance to the Bush administration and raises the question of who would replace him should he resign. Republicans privately call him "the prime minister."
Even before this latest medical episode, it was widely assumed that Cheney would step down from the ticket before the next election. One of the reasons Cheney has such a broad grant of authority is his presumed lack of political ambition.
One scenario has Cheney and Powell trading jobs in 2004. Powell would be a huge asset as a runningmate for Bush. And Cheney could add secretary of state to his illustrious resume. But Powell, arguably the most popular political figure in America, could overshadow Bush, a fact that could even prompt calls for a Powell presidential candidacy in 2004. There is, however, another, more likely choice. Republicans joke darkly that their most powerful senator is not Majority Leader Trent Lott of Mississippi, but Bill Frist of Tennessee, a heart surgeon who has given medical assistance to a number of fellow senators. Further, the affable Frist is one of Bush's favorite senators, which makes him the odds-on choice to succeed Cheney as Bush's running mate in 2004 or, if necessary, to replace him sooner. Frist fits the profile. Like Bush, he is a compassionate conservative who speaks softly and adheres to a right wing agenda.
Political Correspondent Eleanor Clift contributed to this column.
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