Democrats Battle Over Taxes

By David Darman on Tuesday, January 20, 2004.

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The old saying that "nothing is certain but death and taxes" has a political spin this primary season.

There's nothing certain but Democratic candidates talking about taxes.

All the major candidates condemn President Bush's 2.5 trillion dollar ten year tax cut.

But that common ground doesn't stop the candidates from sniping at each other over their tax plans.

Still, many of those differences don't seem to have sunk in with voters.

New Hampshire Public Radio's David Darman has more.

At any candidate rally in the Concord area, Democratic leaning voters seem to agree on one thing.

They are not happy with President Bush?s tax cuts.

Harvey Harkness of Epsom attended a recent Dean rally.
14 06 I think they?re terrible. I think they?ve increased our national debt by astronomical amounts. They?ve taken money away from middle class and put in the pockets of the upper quartile of income people in the country. And I think it was a terrible mistake. 14 29

But while voters may criticize the Bush policy, they don?t know what to do about it.
Jeannie Daniel of Henniker attended a recent Clark event in Concord.
03 123 to be honest with you, I haven?t heard enough about what they are going to do to redo the tax system to even make an educated statement about it. 03 134

The candidates have been trying hard to get voters like Daniel to focus on their tax plans.

Former Vermont Governor Howard Dean and Ohio Representative Dennis Kucinich have adamantly advocated a complete rollback of the Bush tax cuts.

During a recent debate, Kucinich laid out his proposal.
As president of united states what I would do is to move forward with the progressive tax act of 2005, which would ensure an equal tax burden on all taxpayers, will provide tax relief for workers and families, it would provide for a 2,000 dollar simplified family credit, it would close the corporate loopholes and it would eliminate the bush tax cuts that went to the people in the top bracket. That together with a universal, single payer health care system can help restore our economy. :24

The Reverend Al Sharpton has also said he supports the complete rollback of the Bush tax cuts.

Howard Dean says that reversing the tax cuts is the only way to achieve economic health.

He would use the tax revenue to pay for what he thinks the country needs.
If we?re going to have jobs in America, we have to balance the budget. If we?re going to have a decent America, to join with every industrialized country in the world to have basic needs taken care of, we?re gonna have to do something about education, and we?re going to have to do something about healthcare.

Dean argues that savings in education and health care costs will total more than the tax cuts.

Three other Democrats disagree with Dean about a complete rollback of the tax cuts.

John Kerry, John Edwards and Joe Lieberman would leave the Bush tax cuts in place for middle class families.

However, they never define what the middle class is.

They would also leave the expanded child care credits.

And they would not reinstate the so called, ?marriage penalty?.

Senator Lieberman would go even further.
? I?m proposing an additional tax cut. Twenty seven hundred dollars under my plan in the pockets of the average family of four in nh than howard dean would leave there. They worked hard for it. They ought to keep it. :15

Lieberman would also expand the earned income tax credit, which gives cash back to very low income taxpayers.

Wesley Clark has also said he would help working and middle class families with revisions to the tax code.

Clark says that his proposal would restore fairness that had been wiped out by the Bush tax cuts.
01 827 now my tax reform proposal is very simple. Those who make the most, should pay more. Those who make the least, should pay less. And here?s the benchmark. Under my plan, families of four, making under 50,000 dollars a year, will not pay a single penny in federal income tax. 01 853

Clark and other Democratic candidates also propose that the wealthy should pay more in taxes.

Leiberman, Kerry, Dean, and Kucinich would simply restore top tax rates that were in effect when Bill Clinton was in the White House.

Clark and John Edwards would raise those rates even higher, for the very richest Americans.

North Carolina Senator Edwards.
Here?s what I believe I can do. I can pay for everything that I have proposed by stopping people?s tax cuts that make over 200,000 a year, doing something I don?t think anyone else up here does, raise the capital gains rate, for those who make over 300,000 dollars a year, close four corporate loopholes. It pays for everything I want to do, plus reduces the federal deficit.

Edwards, Kerry, Lieberman and Dean all promise to reduce the current deficit.

But Bob McIntyre of Citizens for Tax Justice in Washington D.C. says the deficit can?t be reduced if the Bush tax cuts are only partially rolled back.

McIntyre says deficit reduction will only work with more substantial reversals.
55 I think going after the tax cuts is the only fiscally responsible thing to do and if you want to keep a little bit of them, fine. But not the major parts that some candidates say they want to keep and they want to add new tax cuts like Lieberman and Edwards. I think that?s a mistake, because we can?t afford it right now. Bush has put us into too deep of a whole. 55 22

McIntyre says there?s one other thing that could hold back a Democratic presidential candidate if elected.

He says if Congress remains under Republican control, Democratic tax plans will likely be ?dead on arrival?.