IPI Publication Press Release - No Cuts, No Guts, No Glory?

This information is taken from a new IPI Issue Brief, “The Fiscal Plans of Al Gore and George Bush: A Comparison,” by Gary and Aldona Robbins. For copies or further information, visit www.ipi.org or call Sonia Hoffman at
(972) 874-5139. The authors are available for interviews.

	IPI Publication Press Release IPI Issue Brief Related Publication Title: The Fiscal Plans of Al Gore and George Bush: A Comparison Released by Sonia Hoffman on 10/31/2000	Synopsis Full Text Press Release (10/09/2000) Press Release (10/12/2000) Press Release (10/30/2000) Press Release (10/31/2000) Press Release (02/07/2001) Press Release (01/25/2001) Media Advisory (10/09/2000) OpEd (11/09/2000) Full Text PDF
	No Cuts, No Guts, No Glory? A Comparison of the Economic Effects of the Gore/Bush Fiscal Plans For Immediate Release For more information: Sonia Hoffman Tuesday October 31, 2000 (888) 557-4IPI or shoffman@ipi.org Dallas, TX: Both presidential candidates agree that the preponderance of the surplus should go to paying off the debt. But it’s the use to which the remainder is put that could dramatically affect the federal budget and the general economy. Would new government programs or tax cuts further our economy? According to Gary and Aldona Robbins, senior fellows for the Institute for Policy Innovation (IPI), “The Bush tax cuts would have bigger, positive effects on the economy because they reduce marginal rates, largely due to the cut in income tax rates and elimination of the estate tax. “Gore’s tax cuts would provide minimal positive effects because they are much smaller and have little effect on incentives to work, save or invest. His targeted tax cuts lead to higher marginal rates, and most of his tax increases fall on American business.” Put another way, the Bush tax cuts would provide more “bang for the buck.” For every dollar of static revenue loss, the Bush tax cuts would generate $1.80 in added output, compared to 41 cents for Gore. Bush’s fiscal proposal shaves federal taxes from today’s level of 20.1% of GDP to 19.1%. Gore’s reductions would leave the tax take at 19.5% of GDP, 0.4 percentage points higher than Bush. But even then the tax burden under both Bush and Gore would stay well above the 18.1 percent of the Reagan-Bush years. The plan with the larger tax cuts would bring more economic growth and higher federal revenues. And when $4.6 trillion in surpluses hang in the balance, it’s just plain sense for Americans to demand tax relief. It’s really not such a gutsy move after all. This information is taken from a new IPI Issue Brief, “The Fiscal Plans of Al Gore and George Bush: A Comparison,” by Gary and Aldona Robbins. For copies or further information, visit www.ipi.org or call Sonia Hoffman at (972) 874-5139. The authors are available for interviews.