Evans Takes On Tax-Cut Foes

On the first anniversary of the signing of President Bush's across-the-board tax cut, U.S. Commerce Secretary Don Evans took U.S. Sen. Joseph Lieberman and other critics to task for proposing to repeal key tax-cut provisions.

"Partial repeal of the Bush tax cut would threaten our emerging recovery. It would harm entrepreneurs, our farmers and families with children," Evans said in a speech to the Heritage Foundation. Lieberman recently called for repeal of key components of the tax cut in a speech to the Detroit Economic Club.

"The truth is, the top [tax rate] rate reductions may not be popular, but they are stimulative. Unfortunately, Senator Lieberman's policy prescriptions seem designed to move political numbers, not economic ones," Evans said.

He pointed out that small-business owners and entrepreneurs will receive 79 percent of the tax relief resulting from reductions in the top tax rate. According to Princeton University economist Harvey Rosen, heightened economic efficiencies resulting from the tax cut will total $40 billion a year by 2011.

Evans reiterated the Administration's call for Congress to make the tax cut permanent. (Under current law, it would sunset in 2010.) He said if the cuts are allowed to sunset, 104 million Americans would be forced to pay an average of more than $1,000 in higher taxes. Further, he pointed out that the Council of Economic Advisors estimates that a tax increase would cost about 500,000 jobs.

"The facts are indisputable. The Bush tax cut is working. It has hastened job creation, produced new incentives for investment, and given consumers an improved capacity to provide for their families. Now is not the time for partial repeal. Now is the time to make it permanent," Evans said.