Americans Believe Taxes Too High, Clinton Holds to Veto Vow
(CNSNews.com) - Nearly two-thirds of Americans believe they're over-taxed, according to the results of a recently released survey. The new data comes less than two weeks before Congress returns from its Labor Day recess and sends its $792 billion tax cut to President Clinton who has already announced he will veto the plan.
The results of a Zogby "American Values" poll indicates that 59.8 percent of Americans say they pay too much in taxes while 37.1 percent are content with the current tax rates.
Congress passed the 10-year tax cut plan mostly along partisan lines on August 5, just before returning to their districts for the August recess. Before the vote was even taken Clinton vowed to veto the measure.
While Clinton vacations along the shore of Martha's Vineyard, Massachusetts, White House spokesman Joe Lockhart took a stab at the GOP tax relief package saying Republicans went to their districts to find a skeptical constituency. Lockhart added, "And it's certainly our hope that they will come back to Washington in a different frame of mind."
Most GOP Members appear to be sticking to their call for tax relief.
As some GOP Members trickle back to Capitol Hill from their districts, House Republican Conference Chairman Rep. J.C. Watts reiterated the party line on tax cuts. "Republicans in Congress believe that Americans deserve some tax relief from the highest tax burden in 50 years. Republicans believe dollars, decisions, and freedoms should be returned home to help Americans provide for themselves and their families."
Democrats have attacked the plan as one that would only benefit the rich. But a closer look may prove otherwise. The tax relief package would allow those in the lowest tax bracket a seven percent savings, compared to a one percent savings for the remaining tax brackets.
The GOP tax relief plan allows for $5,000 IRA contributions, compared to the current $2,000 limit. Capital gains taxes would drop from 20 percent to 18 percent in the higher brackets, and from 10 percent to eight percent in the lower income brackets.
Clinton has denounced the plan as a danger to numerous government programs including Social Security and Medicare. But an analysis of the tax relief package conducted by the Institute for Policy Innovation indicates such a plan would be a boost to the economy.
The government would end up collecting more in tax revenue due to increased consumer spending if Clinton signs the tax relief bill, according to IPI. In a statement released Friday, the public policy group said, "Because of added growth generated by these tax cuts, the federal government would collect $260 billion more in income, payroll, excise and other tax revenues over the next ten years."