Editorial: Do the math: No tax cuts

Monday, Dec. 12, 2005 | 8:53 a.m.

Last month the House passed a budget that cut billions in spending for low-income people. If the cuts remain in the final budget passed by both the Senate and the House, those receiving Medicaid, student loans, food stamps and child-support payments would have to make sacrifices they can ill afford.

And last week the House voted to extend, until 2010, tax cuts for high-income people. If the cuts remain, those with substantial investments in stocks and real estate will enjoy a more prosperous decade.

Altogether, the House and Senate have each approved about $100 billion in tax cuts that mostly benefit wealthy people -- at a time when the federal government is running a deficit of $319 billion and a national debt of $8 trillion. Something should have to give, however, as the Republicans in power have resolved to pass a budget with tax cuts worth "only" $70 billion.

We see this resolve fading fast, however. The two houses, controlled by Republicans, will have to meet and negotiate their respective budget proposals. Even though nearly 40 million Americans are living in poverty, we can't see either house yielding too much in their fervor to serve the rich.

Republicans justify the tax cuts on the theory that wealthy people drive the economy, and that as they grow in prosperity, poor people will be able to find work as the result of their investments in business and industry. Democrats counter that tax cuts, especially at a time of record government spending, simply drive up government debt, which threatens to bring the economy to a grinding halt.

We believe the Democrats have the sounder argument. The country is fighting staggeringly expensive wars in Afghanistan and Iraq, plus funding a global war on terror that has troops in dozens of countries. The troops are being shortchanged on supplies and the poor are being shortchanged on vital services. Congress should reject all talk of tax cuts at this critical time.