Snow: Opponents Will Like Tax Cut Once They Understand It
URL: foxnews.com
Tuesday, February 11, 2003
WASHINGTON — Treasury Secretary John Snow -- undeterred by criticism of the president's tax-cut plan -- said Tuesday that the benefits for the economy would become clear once the package is better understood.
Snow, sworn in last week, has his work cut out for him in his first major task: selling President Bush's package.
That effort was dealt a blow Tuesday when Federal Reserve Chairman Alan Greenspan, testifying on Capitol Hill, said he didn't believe the economy needed further stimulus and warned Congress to be "very careful" to keep budget deficits from ballooning.
Senate Democratic leader Tom Daschle of South Dakota called Greenspan's remarks "a kiss of death" for the Bush plan.
Snow disagreed.
"We've only begun to sell this package," Snow said Tuesday in his first interview with reporters since taking over at Treasury. "So I think it is a little early to be saying this package isn't going to go anywhere."
The president's new 10-year, $1.3 trillion tax-cut package includes $670 billion in accelerated tax cuts and the elimination of taxes on stock dividends as part of a way to energize the lackluster economy.
Snow said the package is geared to helping the economy over the long haul.
"This is a growth package -- not a stimulus package," Snow said. "I think we need to keep emphasizing what we are talking about here is genuine growth in the economy, rather than some short-term kicking the economy up a notch for a temporary boost. If this were only a temporary boost, I wouldn't be so enthusiastic about it."
Democrats, who have their own smaller-scale plans to help the economy, say Bush's plan favors the wealthy and would plunge the federal government into even deeper red ink. Some Republicans as well have expressed concerns about pieces of Bush's package, including the dividend tax cut.
Snow said some lawmakers may believe the dividend piece is troublesome because they don't understand it.
"The dividend is the newest and freshest and least known to the members of the House and Senate because it is a new policy idea. It hasn't been in the mix," Snow said. "I think ... the president's proposals are going to be very well received once they are better understood."
Snow said building the economy is one way to handle growing federal budget deficits. This year's deficit is expected to reach a record high of $304 billion.
While Snow said he supported Greenspan's call for fiscal discipline, he struck a cautious note: "You can achieve balanced budgets in way that are very sub-optimal for the economy."
Snow pitched the president's plan Tuesday during his first trip to Wall Street as treasury secretary. He said he particularly enjoyed the hubbub of a trading floor, which he described as the "engine room of financial capitalism."
He travels to Detroit and Philadelphia on Thursday and Friday to make more sales calls. Snow plans to travel around the country in the months ahead to promote and explain the president's package.
"We're going to make a full court press on this," Snow said. |
