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Economic & Fiscal Policy
Budget Strategies

DLC | Briefing | February 9, 2001
The 2001 Tax & Budget Debate: Briefing Materials


Last Updated June 21, 2001: Bookmark this page; we will continue adding new material as the debate progresses.

The Latest

"The Tax Debates Have Only Begun," by Jeff Lemieux, PPI Policy Backgrounder, June 21, 2001: The 2001 tax cut has several good features but also busts the 2001 budget in devious and worrisome ways.

Blueprint, Spring 2001:

Bush's Tax Plan is a Reckless Gamble with America's Prosperity. There's a Better Way.

Table of Contents

The Big Picture

"Tax Cuts 2001: The Economic Basics," by Jeff Lemieux, PPI Backgrounder, February 9, 2001.

"The New Growth Economics: How to Boost Living Standards through Technology, Skills, Innovation, and Competition," by Robert D. Atkinson, Blueprint Magazine, Volume 9, Winter 2001.

"Saving for Retirement: Using Tax Credits To Boost Private Savings," by Jeff Lemieux, Blueprint Magazine, Volume 9, Winter 2001.

"A Progressive Path Toward Universal Health Coverage," by Jeff Lemieux, David Kendall, and S. Robert Levine, MD; PPI Policy Report, December 20, 2000: Tax credits are a key to enhancing public financing for private health insurance coverage.

A Progressive Tax Cut Plan

"A Progressive Tax Cut and Prosperity Plan," New Dem Daily, March 1, 2001: We propose a simple, two-part plan that devotes about $700 billion over ten years to pro-work, pro-family tax cuts, and sets $1 trillion aside to maintain fiscal discipline and prosperity while we wait to see whether future surpluses actually materialize.

"Putting Economics First: A Tax Cut Proposal for Economic Growth and Prosperity," by Jeff Lemieux, PPI Policy Report, March 2, 2001.

Public Opinion

DLC/Penn Poll on Tax Cuts, March 7, 2001: Not only do American voters have higher priorities than tax cuts for the surplus, but they also share different values than President Bush on how taxes should be cut.

Talking About The Issues

"New Democrats Support Fiscally Responsible Budget," House NDC Message of the Week, March 27, 2001.

"New Democrats Oppose Irresponsible Republican Tax Cut," New Democrat Coalition Message of the Week, March 5, 2001.

"New Democrats Support Balanced Economic Plan," New Democrat Coalition Message of the Week, February 13, 2001.

"The Emperor's New Clothes: A New Democrat Critique of the Bush Tax Plan," The New Dem Daily, February 9, 2001.

"A New Democrat Tax Cut: Six Questions We Should Ask," by Jeff Lemieux, Blueprint Magazine, Volume 9, Winter 2001.

"Greenspan On Tax Cuts: How New Democrats Should Respond," New Dem Daily, January 29, 2001.

Leaders In The Debate

Remarks by Sen. Evan Bayh to the Commonwealth Club of California, April 10, 2001.

"A New Prosperity Agenda," Address by Senator Joe Lieberman, George Washington University, March 26, 2001.

Bayh and Centrists Introduce Bipartisan "Trigger" For Fiscally Responsible Tax Cuts, Spending, Press Release, March 7, 2001.

House Centrists Take Action on Triggered Tax Cuts, Press Release, March 7, 2001.

Senator Bayh's Response to the President's Address, February 28, 2001.

Preserving The Prosperity: Economic Growth, Tax Incentives, And Fiscal Discipline Speech by Sen. Joe Lieberman, February 27, 2001.

Moran Outlines Objections to Bush Tax Cut Plan, Press Release, February 15, 2001.

Greenspan Expresses Support for Tax Cut Trigger Mechanism, Press Release, February 13, 2001.

"It's the Budget Framework, Stupid!," Editorial by Rep. Jane Harman, Torrance Daily Breeze, February 16, 2001.

Lieberman Calls Bush Tax-Cut Plan "A Mistake", Press Release, February 8, 2001.

Letter From Sen. Evan Bayh, et al., to President Bush, February 5, 2001.

"Responsible Tax Cuts Should Be Triggered" by Rep. Ellen Tauscher, Editorial, January 26, 2001.

Commentary & Analysis

"President Deficit?" PPI Editorial, May 1, 2001: Whether this year's big tax cut ends up at the President's goal of $1.6 trillion over ten years, or the Senate's $1.2 trillion figure, one thing is certain: fiscal discipline will be almost impossible to maintain next year and the year after.

"The Bush Budget: Less Than Meets the Eye," New Dem Daily, April 10, 2001: Budgets are supposed to be a reflection of the country's priorities. But the Bush budget makes tax cuts the overriding priority, and dodges the tough choices almost everywhere else.

"The Bush Economic Plan: Surprise! It's Tax Cuts!," New Dem Daily, March 28, 2001: The President's long-range economic "strategy" is depressingly narrow and predictable: it's cutting income tax rates on high earners, implicitly endorsing the discredited supply-side economic theory that engorging the wealthy will magically produce an investment and job-creation boom.

"Lieberman's Prosperity Agenda vs. The Bush Tax Plan," New Dem Daily, March 27, 2001: Senator Lieberman sought yesterday to fill the vacuum left by the Bush Administration's lack of vision in the tax and budget debate by offering a clear analysis of the U.S. economy, and a comprehensive agenda for continuing prosperity not only in the near term, but for many years to come.

"DLC Tax Poll: Bush Plan Support Melts With Facts and Alternatives," New Dem Daily, March 7, 2001: Mark Penn's new poll for the DLC shows that the more people know about the President's tax plan, the less support he can count on.

"Idea of the Week: Honest Numbers," New Dem Daily, March 2, 2001.

"The President's Speech to Congress: Too Good To Be True," New Dem Daily, February 28, 2001: For all his talk about new beginnings and changing the tone in Washington, the President's budget essentially offers an abandonment of the successful economic policies of the 1990s, and a return to the failed economic policies of the 1980s.

"Three Big Whoppers on Tax Cuts," New Dem Daily, February 20, 2001: Now that the Bush Administration's "tax week" is over, it's time to explode three grossly misleading arguments the President and his spokesmen are making in support of their $1.6 trillion tax cut plan (which will actually cost over $2 trillion when updated estimates are completed, and when you count the interest on the national debt that won't get paid down -- but we won't count that one as a whopper).

"Thanks, But No Thanks, For Estate Tax Relief, Say Wealthy Beneficiaries," New Dem Daily, February 15, 2001: A group of 120 of the "wealthiest of the wealthy" have signed a petition to oppose repeal of the estate tax on grounds that it would be "bad for our democracy, our economy, and our society."

"The Price of Tax Cuts," New Dem Daily, February 13, 2001: President Bush campaigned on a host of issues other than cutting taxes. But it's beginning to become apparent -- to the evident horror even of some Republicans -- that the $1.6 trillion tax cut ($2 trillion when you count foregone relief from interest payments) is literally undercutting many of the President's other priorities.

"A Prosperity Easy to Destroy," by Robert E. Rubin, New York Times, February 11, 2001: The proposed tax cut of roughly $2 trillion -- $1.6 trillion of tax cuts plus $400 billion of interest on debt that would otherwise have been retired -- would substantially diminish the fiscal position of the federal government, and would create a serious threat of deficits on the non-entitlement side of the federal budget.

"Tax Week for Democrats," New Dem Daily, February 6, 2001: The Bush Administration has dubbed this week as "tax week." Democrats shouldn't let Republicans command the field with reckless proposals skewed toward the richest Americans without proposing clear alternatives, or without a fight.

"Dr. Greenspan's Exuberance," by Jeff Lemieux, PPI Editorial, January 30, 2001: The big story on Greenspan's testimony last week is this: The economic policies of the 1990s have worked so well and the outlook for this decade is so bright that we can pay down the accumulated national debt to minimum levels and still enjoy substantial tax cuts.

"Whither the New Economy?," by Robert D. Atkinson, PPI Editorial, January 29, 2001: To paraphrase Mark Twain, the reports of the New Economy's demise have been greatly exaggerated.

"Offsetting Payroll Taxes," New Dem Daily, Idea of the Week, January 12, 2001: If we must have a tax cut to boost consumption, there are alternatives to the Bush proposal that make a lot more sense.

"Scaring Up a Tax Cut," by Jeff Lemieux, PPI Editorial, January 5, 2001: Since the election was resolved, President-elect Bush has been warning the nation of an impending recession, and arguing that his tax cut would set the economy straight. Bush's high-profile pessimism could become a self-fulfilling prophecy.

Blueprint Keywords: Extra Budget