Support for Bush tax cuts growing
usatoday.com
WASHINGTON — Public support for tax cuts to stimulate the economy is increasing as Congress prepares to act on reduced versions of President Bush's most important domestic policy goal.
A USA TODAY/CNN/Gallup Poll shows 52% of Americans think the tax cuts Bush has proposed are a good idea, a gain of 10 percentage points in two weeks. And 53% approve of Bush's handling of the economy, his highest rating in six months. (Related link: Poll results)
The gains for Bush come on the eve of key House and Senate votes:
The House votes Friday on a 10-year, $550 billion package that reduces income taxes on corporate dividends and capital gains.
The Senate Finance Committee was set Thursday to send a smaller, $350 billion tax-cut package to the full Senate for consideration next week. It tempers Bush's proposed elimination of taxes on corporate dividends by capping the amount that would be tax-free. Taxes would rise for some Americans working overseas.
Differences between the House and Senate versions — each smaller than Bush's proposed 10-year, $726 billion tax cut package — will have to be worked out later.
The rising public support and forward movement in Congress come as the nation's unemployment rate hit 6% last month and Democrats stepped up their criticism of the president's economic stewardship. It may reflect Bush's shift in focus during the past two weeks from the war in Iraq to the economy, as well as a corresponding shift in news coverage.
Bush plans to take his message on the road next week, with speeches in New Mexico, Nebraska and Indiana. The White House is hoping that public support will bolster the administration's argument.
"The question is, will the Congress respond in a bold enough way to help people who are looking for work find a job?" Bush said Thursday.
A 10-year, $350 billion package of tax cuts was expected to clear a major hurdle in the Senate Finance Committee on Thursday after Republican leaders made changes. Sen. Chuck Grassley, R-Iowa, the panel's chairman, crafted a compromise that could clear the committee and, probably, the full Senate.
The bill would produce tax cuts of $413 billion over 10 years, plus send $20 billion to states to help them cope with budget troubles. It would raise other taxes and fees, and close some tax loopholes, to get the net cost of the package to $350 billion. (Related story: Some taxes go up in stimulus proposal)
The plan would eliminate the current income exclusion of $80,000 per individual and $160,000 per couple for U.S. citizens working in foreign countries, beginning in 2005.
The proposal is sure to stir opposition among expatriates and U.S. companies operating overseas. Among them: giant oil companies, international construction company Bechtel, and oil equipment company Halliburton, which are slated to do much of the reconstruction work in Iraq.
The Senate proposal replaces Bush's centerpiece: the elimination of the tax shareholders pay on corporate dividends. Taxpayers would avoid paying taxes on the first $500 in dividends per year. It would also speed up other individual tax cuts and raise the child tax credit from $600 to $1,000.
The White House and conservative Republicans said the new Senate plan cuts Bush's proposal too much. But they acknowledged it was the best they could do, given concerns among many members of Congress about rising federal budget deficits.
As Bush battles Congress over tax cuts, he enjoys a public advantage. By a 51%-to-39% margin, Americans have more confidence in the president than congressional Democrats to manage the economy.
Analysts say that with the U.S. success in Iraq still fresh in people's minds, Bush may be getting the benefit of the doubt on the economy. At the same time, they add, Democrats have no clear leader or message.
"Bush is successfully marrying national security and economic security in his speeches, and the Democrats have not been able to effectively counter that," says Jaime Regalado, a political scientist at California State University at Los Angeles.
The Monday-Wednesday poll of 1,005 adults has an error margin of +/-3 percentage points. |
