Wednesday, September 15, 2004
Kerry's plan 50% cheaper than Bush's
For all you fiscal conservatives out there planning to vote for Bush...welcome to your wake up call.
By the Bush Administration's own figures, the price tag for Bush's agenda as laid out at the Republican National Convention is in excess of $3 trillion. Bush has complained on the campaign stump that Kerry's plan runs in excess of $2 trillion. The Kerry Campaign disputes this figure.
The cost of tax breaks and spending increases outlined by the Bush administration vastly outpaces the Kerry Plan.
Examples:
* Bush's pledge to make permanent his tax cuts, which are set to expire at the end of 2010 or before, would reduce government revenue by about $1 trillion over 10 years, according to administration estimates (which means it will probably be double that amount).
*An estimate from the Social Security actuary's office, included in the 2001 report of a Social Security commission appointed by Bush, put the cost of adding private accounts to the government retirement program at $1.5 trillion over 10 years. With inflation, the figure would now be about $2 trillion. Much of the expense comes from continuing to pay most retirees at current benefit levels, at the same time that some payroll taxes are being diverted to the stock and bond market.
*Another expensive part of Bush's agenda is the expansion of health savings accounts and creation of lifetime and retirement savings accounts. The new accounts are designed to have minimal cost in the first 10 years but have very large costs in the long run because they provide tax breaks when the money is withdrawn rather than up front.
The Congressional Research Service has estimated those two types of accounts would eventually cost $30 billion to $50 billion a year.
Keep in mind, while all these fabulous tax cuts and Social Security accounts are being established, Homeland Security's budget is being slashed.
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By the Bush Administration's own figures, the price tag for Bush's agenda as laid out at the Republican National Convention is in excess of $3 trillion. Bush has complained on the campaign stump that Kerry's plan runs in excess of $2 trillion. The Kerry Campaign disputes this figure.
The cost of tax breaks and spending increases outlined by the Bush administration vastly outpaces the Kerry Plan.
Examples:
* Bush's pledge to make permanent his tax cuts, which are set to expire at the end of 2010 or before, would reduce government revenue by about $1 trillion over 10 years, according to administration estimates (which means it will probably be double that amount).
*An estimate from the Social Security actuary's office, included in the 2001 report of a Social Security commission appointed by Bush, put the cost of adding private accounts to the government retirement program at $1.5 trillion over 10 years. With inflation, the figure would now be about $2 trillion. Much of the expense comes from continuing to pay most retirees at current benefit levels, at the same time that some payroll taxes are being diverted to the stock and bond market.
*Another expensive part of Bush's agenda is the expansion of health savings accounts and creation of lifetime and retirement savings accounts. The new accounts are designed to have minimal cost in the first 10 years but have very large costs in the long run because they provide tax breaks when the money is withdrawn rather than up front.
The Congressional Research Service has estimated those two types of accounts would eventually cost $30 billion to $50 billion a year.
Keep in mind, while all these fabulous tax cuts and Social Security accounts are being established, Homeland Security's budget is being slashed.
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