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As Bush is playing politics, so are we: Congressman
WASHINGTON. Dec 25 : The tax-cut battle between President Bush and Congress has become a contest between economists and pollsters for the ears and minds of politicians. If you money's on the economists, you lose, reports AP.
Congress last week finished three weeks of hearings on the recession during which economists warned that a big tax-cut not only wouldn't stimulate the economy but could cause long-term dam-
a
So what are lawmakers, and probably the White House, poised to do when Congress returns to work next month? Cut peoples' taxes, and proba-
bly reduce levies on businesses too.
The impetus is pretty clear : pollsters are picking up irresistible signals that on the eve of the 1992 campaign season, the public wants the government to do something about the recession.
President Bush, who is considering a 300 dollar rebate to each taxpayer. Is ‘playing politics' on the issue, and "so are we,' said Representative Dan Rostankowski, a Democrat and Chairman of the tax-writing House Ways and Means Committee.
"Everybody on our committee is panting to do something, and I expect something will be done," said committee member Representative Raymond
McGrath, a Republican.
Uniformly, the economists told the lawmakers that granting several billion dollar in tax-cuts would have little if any effect on a 5.5 trillion dollar economy.
They warned that the economy's real problems are lohg-term. like the mammoth federal deficit, low productivity and a low national savings rate. A drive to cut taxes could swell the budget shortfall, while more serious, long-term problems are Ignored.
"Much of what's going to happen in the next six months is already built into the system," Federal reserve Chairman Alan Greenspan to the Ways and Means panel on Dec
18 . He said Congress should "focus on the long-term and recognize that."
Robert Rcischaucr, Director of the Congressional Budget. Office, gave the Ways and Means panel the same message
"I don't think there 1* anything you can do in the next six months that would affect the turning point 1n the economy."
One lawmaker urging caution is House Budget Committee Chairman Leon Panetta, who says the most important fiscal stimulus would be "if the president and Congress agreed to a long-term strategy for this economy."
But most politicians are incapable of ignoring what the
voters want, particularly with a presidential election reviving up.
The signals are clear :
An ABC News-Washington .’ost poll conducted Dec 11-15 ■bund that 70 per cent of the Eubltc disapproves of Bush's andling of the economy, with only 24 per cent approving.
Congressional Democrats were trusted to deal with the recession over Bush by a 46 per cent to 36 per cent margin, a refreshing finding for Democrats used to being considered second best In that area
In a Times Mirror poll taken Oct 31 through Nov 10. 43 percent of respondents said they were worse off eco-
nomically ban they were four years ago, compared with 40 per ednt who said they were better off. When candidate Ronald Reagan asked that question during his 1980 race again at President Carter. Americans answered the same way and Reagan became presl-dent.
An NBC News-Wall Street Journal poll conducted Dec 6-8 found that people favour a tax-cut to stimulate the economy by a 57 per cent to 31 per cent margin.
With the eteclion just 11 month away, those figures strike terror for the administration and cause joy for Democrats. As a result, neither side Is likely to be able to resist doing something.