Friday, May 30, 2003 | 9:14 a.m.
On Wednesday President Bush signed into law a set of massive tax cuts. The bill-signing ceremony in the East Room of the White House was staged to get maximum media coverage -- and it worked. That was in stark contrast to the day before when Bush quietly signed into law a bill that raised the national debt limit, permitting a record $984 billion increase in the amount the federal government can borrow to meet its obligations. No photographers or reporters were allowed to record that dubious action.
It was an embarrassment for Bush and his fellow Republicans in the GOP-controlled Congress, who tout themselves as fiscal conservatives, to raise the debt limit. But it was necessary to make way for Bush's tax cuts. The president is ducking the fiscal responsibility demanded of the states, including Nevada, that are struggling to balance their budgets through either tax hikes or cuts to vital programs such as education.
The president's tax cut package itself is being sold as something it isn't. Besides the questionable claims that it will help the economy -- don't forget that 2 million more Americans are out of work since Bush's first tax cut in 2001 -- the tax cut is much bigger than the $350 billion over 10 years that it has been described as. Republican deficit hawks didn't want to go above $350 billion in tax cuts, so GOP congressional leaders engaged in budget gimmickry to win their support. The legislation contains a number of tax cuts that are supposed to end within a few years, if not sooner, but those sunset provisions almost certainly will not become reality. That's because members of Congress always fear ending tax-cut sunsets, lest they be accused of supporting tax increases. So if all of the tax-cut provisions end up being extended the full 10 years, the actu al cost will be more than $800 billion, hardly a case of frugality.
It's not as if the public is clamoring for tax cuts. An NBC News-Wall Street Journal poll last week found that just 29 percent of those surveyed said tax cuts are the best way to spur economic growth and create more jobs. The gap is growing between Washington and the rest of the nation on tax cuts and fiscal responsibility. The only question is whether down the road the public will hold Bush and the GOP-led Congress accountable if the economy is stagnant or continues to sour.
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