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 10/12/2000
IPI Issue Brief
Related Publication Title:
The Fiscal Plans of Al Gore and George Bush: A Comparison
Released by Sonia Hoffman on 10/12/2000
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Who’s the Champion?
For Immediate Release: Thursday, October 12, 2000
For more information: Sonia Hoffman
(888) 557-4IPI or shoffman@ipi.org
Dallas, TX: The second round of presidential debates is over, but not without each candidate again throwing punches at their opponent's tax proposals. Yet many people are left asking whose plan--really--would buckle under real economic pressure?
After weighing in the evidence, "The Fiscal Plans of Al Gore and George Bush: A Comparison," a new Issue Brief from the Institute for Policy Innovation (IPI), announces that Bush’s plans comes out on top.
“Bush’s fiscal plan 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,” say study authors and IPI Senior Research Fellows Gary and Aldona Robbins. “While both nominees agree that the preponderance of the expected surplus should go to paying off the debt, the use to which the remainder is put dramatically affects the federal budget and the general economy.”
If that’s true, then voters will want to consider the following dynamic analysis when handing in tickets for their contestant of choice:
· For every dollar of static revenue loss, the Bush tax cuts would generate $1.80 in added output, compared to 41 cents for Gore.
· The Bush tax plan would generate almost 2 million new jobs (a 1.4% increase) and raise the stock of U.S. capital by 6.8 percent.
· Gore’s strategy, on the other hand, would add only 200,000 more jobs (a 0.14% increase) and increase the stock of U.S. capital by 0.03 percent.
· The federal budget also fares better under the Bush plan, with higher growth offsetting 27.3% of the static revenue loss by 2010 and 34.2% by 2020. In contrast, the most the Gore plan would offset is 5.7%.
Whoever wins the White House will have a good to deal say about what will happen to the almost $4.6 trillion in taxpayer surpluses. Voters must choose their side of the presidential ring carefully—to make sure that those surpluses are put to the best possible use to keep this now-longest economic expansion going.
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.
