Thursday, Sept. 15, 2005 | 9:10 a.m.
In the aftermath of Hurricane Katrina, questions have been raised about the need for $70 billion in tax cuts that have been proposed by Republican congressional leaders. It is not only Democrats who are wondering about the necessity of this tax-cut plan, which was unveiled this spring. Republicans, worried about the impact on the federal deficit, are voicing their concerns, too. Republican Sen. George Voinovich of Ohio tells Bloomberg News that the budget pressures from Katrina, the Iraq war and paying for a prescription drug benefit for seniors are reasons why he is leaning against voting to extend tax cuts made in Bush's first term. Congress already has approved $62 billion in aid to deal with Katrina, and there are estimates that the total federal cost might reach $200 billion or more.
There are about two dozen different tax-break extensions in the package under consideration, and some of them are worthy of passage, such as making permanent the tax deduction that teachers can claim for out-of-pocket classroom supplies. But others, such as those that principally benefit the wealthy -- an extension of tax cuts on stock dividends due to expire in 2008 -- should be shelved for now. While House Republican leaders are temporarily putting off a vote, they plan on pushing for passage of the tax-cut package by as early as October.
A time such as this, when our nation is at war and we are reeling from the worst natural disaster to ever hit our country, requires a shared sacrifice among all Americans. What is not needed now is a repeat of Bush's first term, when the Republican-controlled Congress passed the president's tax cuts that mostly benefited well-off Americans. It is essential that Congress not only gets its financial house in order, but that it also demonstrates that it understands the real needs and priorities of this country. That means lending a hand to those Americans who need it most -- not giving handouts to those Americans who have profited handsomely already under this administration's policies.
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