Treasury chief talks up tax cuts

WASHINGTON - Treasury Secretary John Snow, promoting the administration's tax plan ahead of today's Senate debate, called it a fix for "a soggy economy."

Hogwash, countered Senate Democrats, who say benefits from cuts will not help most people.

The debate played out on the Sunday talk shows while President Bush got ready to hit the road this week to campaign in three states for the proposal.

"A soggy economy is what we've got today. We're in a recovery but it's not as strong and robust as it should be," Snow said on ABC's This Week. "That's why the president's pushing this jobs and growth plan."

Democrats worried that more tax cuts would send the federal government further into debt. The Bush plan, they said, would aid the rich but fail to "trickle down" to low- and middle-class Americans.

Sen. Mary Landrieu, D-La., said plans to revive the economy needed to go another way. "I think this whole "trickle-down' is hogwash," she said.

The Senate today was to begin debate on a GOP-backed $350-billion tax cut proposal, which is less than half of what Bush had sought. Several Republicans see that bill as a starting point, although many Democrats support no more than $150-billion in tax relief.

Snow's appearances were part of the administration's effort to promote Bush's plan and win congressional approval.

Friday, the House approved a $550-billion version of the bill that would trim levies on wages, capital gains and some business investments. It would give Bush a smaller reduction than he wanted on corporate dividend taxes.

© 2006 • All Rights Reserved • St. Petersburg Times
490 First Avenue South • St. Petersburg, FL 33701 • 727-893-8111

Contact the Times | Privacy Policy
Standard of Accuracy | Terms, Conditions & Copyright