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George W. Bush 2000 On The Issues
Budget/Use
Of The Surplus
The federal government is expected
to run a surplus of nearly $5 trillion during the next ten years. Governor
Bush has proposed a balanced economic program that will use the surplus to
prepare for the future, dedicating: half to saving Social Security by
establishing personal retirement accounts and reducing the debt held by
the public; one-quarter for pro-growth tax cuts; and the remainder to
reform education, strengthen Medicare, and support other priorities.
As President, Governor Bush will bring taxes down from their record
high level and pay the debt down to a historically low level.
Governor Bush’s Approach
Lock-box one-half of the surplus for strengthening Social Security by
establishing personal retirement accounts and paying down the public debt:
Within a decade, the massive Baby Boom generation will be eligible for
Social Security.
- Governor Bush has proposed a bold framework to save Social Security,
rather than simply passing the burden to the next generation.
- He will set aside over half of the surplus to strengthen Social
Security through personal retirement accounts and debt reduction.
- Personal accounts are the best way to guarantee that the Social
Security surplus is not used for other purposes.
- Governor Bush will also pay down a record amount of the debt held by
the public, which will fall to the lowest level since the Great
Depression (as a share of the economy).
- Both debt reduction and personal accounts will improve the economy
by increasing national savings and investment.
Reserve over one-quarter of the surplus for broad-based tax cuts:
Governor Bush knows that hard-working Americans, not Washington,
created the surplus.
- He will return about a quarter of the surplus directly to the people
who pay the bills.
- As President Reagan demonstrated two decades ago, lower tax rates
are the key to raising the standard of living for all Americans.
- A sound tax plan is the best insurance policy against an economic
downturn.
Reserve substantial funds for other priorities: Governor Bush will use
the remainder of the surplus for other important priorities like
defense, Medicare, education, and the environment.
Governor Bush’s Surplus Proposal
Use of the Surplus: Governor Bush
2001-2010
Baseline Surplus - $4.6 trillion
Reserve for Social Security (personal accounts & debt reduction) -
$2.4 trillion - 52%
Broad Tax Cuts - $1.3 trillion - 28%
Other Priorities & Additional Debt Reduction* - $0.9 trillion -
20%
*includes savings of $0.2 trillion from government reform
Texas Record
Fiscal Discipline
- Under Governor Bush, state budget surpluses have increased from $333
million to a high of $3.5 billion.
- Governor Bush cut the growth of state spending to its lowest rate in
40 years. When adjusted for inflation and population, state
spending will increase only 3.6 percent between 1994-1995 and the end
of the 2000-2001 biennium.
Tax Cuts
- Governor Bush has advocated and delivered the two largest tax cuts
in Texas history: $1 billion in 1997 and $2 billion in 1999.
- Under Governor Bush, Texas has the 3rd lowest state tax burden in
the country
Source: George W. Bush for President 2000 Web Site |
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