Leading the Nation
Education Partners
· From 'acoustics' to 'zoology,' explore our online Dictionary of Science and Technology
· Learn about the U.S. with our online atlas
· Understand the phases of the moon
· Online Stanford writing assessment


bullet  Presidential play
bullet  Inaugural sneak peek
bullet  Teens in the Bush era
bullet  Assuming power
bullet  Presidential roles
bullet  The power of the media
bullet  Capital career changes
bullet  D.C. debriefings
bullet  Past inaugurals
bullet  Promises of unity
bullet  Views from the sidelines
bullet  Web resources
bullet  Glossary
bullet  allpolitics coverage
bullet  Webcast basics
bullet  Webcast schedule
bullet  Unit overview
bullet  Lesson plans
bullet  Discussion/activities
bullet  Backgrounders
bullet  Ask an expert
bullet  Web resources
bullet  allpolitics coverage
bullet  Latest news
bullet  Archives
bullet  Back to mainpage

Democrats show signs
of favoring Bush's tax cut plan



January 23, 2001
Web posted at: 12:43 PM EST (1743 GMT)


Student News Archive

WASHINGTON (CNN) -- President George W. Bush has not yet occupied the Oval Office for a week, but there are signs that he will make good on his promise to unify Democrats and Republicans.

Sources on both sides of Capitol Hill have said that Democratic lawmakers are moving away from the targeted tax cut plan proposed last year by the Clinton-Gore team and toward the $1.3 trillion tax cut that Bush is pushing.

Bush's plan, introduced by U.S. Sen. Phil Gramm, the Texas Republican, calls for replacing the five current tax rate brackets that run from 15 percent to 39.6 percent with four new rate brackets: 10 percent, 15 percent, 25 percent and 33 percent. It also doubles the child tax credit from $500 to $1,000, reduces the so-called marriage tax penalty and repeals the inheritance tax.

Most Democrats still object to the size of the tax cut and say it needs to be aimed at middle-income taxpayers and not the wealthy. But Democrats in the House and Senate said there has been significant movement within their caucuses about tax cuts since the election.

What will life be like for teens under President George W. Bush?

Bush inaugural address

Patty Davis: Bipartisan support for Bush tax cut plan

The change in mind-set could be because of the slowdown in the economy, larger-than-expected surplus projections and the belief that Democratic candidates were hurt during the election when Republicans painted them as being tax-cut opponents.

One Senate aide familiar with the work being done by Democrats on the Senate Finance Committee said Democrats also believe that Bush only has a six-month window to pass a large tax cut. If the economy slows down, the updated surplus figures released next summer will reflect a proportionate decline in government revenue.

This will alarm fiscal conservatives in both parties who favor paying down the national debt and worry about dipping into the Social Security surplus to pay for government spending.

Congress to review possible tax cuts
Jan. 18, 2001
Clinton's final economic report
Jan. 12, 2001
Bush starts term focusing on taxes, education
Jan. 22, 2001
Democrat Zell Miller to co-sponsor Bush tax cut
January 21, 2001
Campaign promises could prove troublesome for Bush
January 9, 2001

A join venture of Turner Learning
Privacy About Feedback Back to top
2000 Cable News Network. All Rights Reserved.
Terms under which this service is provided to you. | Read our privacy guidelines.