Iowa Republicans say tax cut a victory
May 30, 2001
President George W. Bush’s tax plan has passed Congress and is receiving both praise and criticism from around the state.
Steffen Schmidt, university professor of political science, said the tax plan is a very complicated package.
“The Republicans believe in small government – a tax cut is a way to choke off the government and make the government smaller,” Schmidt said.
He said Bush used this tax cut as a campaign tool, and the Republicans have historically promoted tax cuts.
“Enough Democrats voted for the tax cut package for it to go through. The Democrats were nervous about not getting a tax package,” Schmidt said.
Democrats in the past have been associated with high taxes, he said. Bush’s tax cut package went through with enough Democratic support that it could be called bipartisan.
“People are saying that it is too big and too long into the future to know what is going to happen,” Schmidt said.
He said economists vary on the effects of the tax cut on the nation. Some say the effect is going to be too slow, while others think it is just right.
“Tax cuts are only partly economical, and the other part is politics and ideology,” Schmidt said.
He said the largest growth in government is actually at the local level, not at the federal level.
People still want federal tax cuts while they are willing to spend money on local taxes for such items as schools and roads.
Sara Leonard, Communication Director for the Iowa Democratic Party, said this tax cut is not going to be good for the average American.
“The tax cut by the Republicans will benefit the wealthiest Americans while shorting up money for Medicare, prescription drugs, education, social security and paying down the debt,” Leonard said.
She said concerning Iowa, the wealthiest 1 percent will receive the majority of the tax cut.
“If you combine middle and low income, which is 60 percent of Iowa, [they] will receive 16.7 percent of the benefits, which is less than 27.2 percent of the benefit the wealthiest 1 percent receive,” Leonard said.
Leonard said that it is no surprise Sen. Chuck Grassley, R-Iowa, was the chairman of the Senate Finance Committee, who was in charge of handling the legislation.
“Grassley was reported, by the Des Moines Register, as a millionaire with an estate valued between $1.1 to $3.3 million,” she said. “It is no surprise that he would work for a tax cut for the wealthiest 1 percent, like himself.”
Leonard said there were many chances for Republicans to fund other areas.
“The Republicans voted down amendments that would shorten up the national debt and help education,” she said.
Leonard said this type of tax cut has happened before, and the results were less than favorable.
“The last time we had a tax cut we were rewarded with a multiple recession in the 1980s,” Leonard said.
Marlys Popma, Executive Director of the Republican Party of Iowa, has a bit of a different outlook on the new tax plan that was passed.
She said the tax cut is an example of how President Bush set a goal as a candidate and accomplished that goal as president.
“The most exciting thing for me personally is that as governor and candidate, Bush put a priority on tax cuts, and within 140 days we had a tax cut,” Popma said.
Popma said that phasing out the “death tax” is one item of the tax plan that will help Iowa.
“The death tax does not just affect the family members, but it also affects the people that work for that family and lose their jobs when the business shuts down,” she said.
She said anytime the government takes $1.35 trillion more than needed, the money should be given back to the people who earned it.
“People that think this tax cut is too big believe that the government should do more for people,” Popma said. “I believe that people should do more for people.”