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To: Dealer who wrote (30414)	2/3/2001 7:13:32 PM
From: Dealer	Respond to of 65232

Bush Says Tax Plan Is Invite to Economic 'Party' By Patricia Wilson WASHINGTON (Reuters) - President George W. Bush (news - web sites), pushing his $1.6 trillion across-the-board tax cut Saturday, likened the recent U.S. economic boom to a party and said it was time ``to invite everybody in.'' From Camp David, the presidential retreat in Maryland's Catoctin Mountains, Bush also telephoned three foreign leaders, establishing contact with Presidents Ricardo Lagos of Chile and Fernando de la Rua of Argentina ahead of a hemispheric summit in April and conveying his ``strong interest in African affairs'' to South African President Thabo Mbeki. Bush, who sends his tax proposal to Congress next week -- where skeptical Democrats say it is too big and some fellow Republicans argue it could be even bigger -- called his plan ''broad and responsible.'' ``The country has prospered mightily over the past 20 years,'' he said in his weekly radio address. ``But a lot of people feel as if they have been looking through the window at somebody else's party.'' Bush said many Americans still felt ``squeezed'' because they worked up to 60 hours a week and still had trouble paying their bills. ``It is time to fling those doors and windows open and invite everybody in,'' he said. Senate Democratic leader Tom Daschle agreed with Bush that ''the American people deserve a tax cut,'' but said the country could not afford the president's which was predicated upon an estimated budget surplus that was ``just a guess.'' ``If the projections are just slightly off ... we could slip easily from surplus right back to deficits,'' the South Dakota senator said in the Democratic radio response. ``Why should we bet our economic future on something that may not happen?'' Debate Over Size Of Cut Bush's tax cut, which seemed a long shot when he unveiled it during the presidential campaign, got two big boosts in recent days. First, Federal Reserve (news - web sites) Board Chairman Alan Greenspan (news - web sites) appeared to signal more tolerance for the idea, telling the Senate Budget Committee on Jan. 25 that economic growth had slowed to a near standstill and adding: ``Should current economic weakness spread beyond what now appears likely, having a tax cut in place may, in fact, do noticeable good.'' Then Wednesday, the Congressional Budget Office (news - web sites) revised its estimate of the federal budget surplus, predicting a windfall of $5.6 trillion over the next decade. The new projection added an extra $1 trillion to the pot of money Republicans and Democrats are wrestling over for tax cuts, paying down the national debt and bolstering government programs for the aging U.S. population. Given the burgeoning surplus, some conservative Republicans believe Bush's tax cut, which the president predicts will stimulate the slowing U.S. economy and which he will send to Congress next week, should be expanded. But Republican Sen. Charles Grassley (news - bio - voting record) of Iowa said the White House had warned against an increase, fearing Bush's tax cut could become too expensive and lose popular support. Democrats contend it already is too big and too late to be effective as a stimulant. Daschle said they were ``ready to sit down'' with Bush and congressional Republicans to seek a compromise. Some Democrats have suggested a figure between $800 and $900 billion. Bush's $1.6 trillion cut would leave too little to overhaul Social Security and Medicare programs for retiring baby boomers, meet the needs of a growing population, cover natural disasters and other emergencies, or finance major wars, Democrats say. ``Unlock'' Doors But Bush said his tax and spending plan would keep all Social Security money in the retirement system, eliminate the death tax, and ``unlock the door to the middle class for millions of hard-working Americans.'' ``There's a lot of talk in Washington about paying down the national debt ... and my budget will do that,'' he said. ``But American families have debts to pay as well. A tax cut now will stimulate our economy and create jobs.'' During the campaign, Bush proposed replacing the current five-rate tax structure of 15, 28, 31, 36 and 39.6 percent with four lower rates: 10, 15, 25 and 33 percent. Declaring recent economic news ``troubling'' and citing rising energy prices, layoffs and falling consumer confidence, Bush added: ``This is not a time for government to be taking more money than it needs away from the people who buy goods and create jobs.'' Bush's third week in office will be devoted to pushing the tax cut proposal he will send to Congress Thursday.