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COLUMN: Tax cuts during war

by Doug Ludlow

Daily Bruin (U. California-Los Angeles)

(U-WIRE) LOS ANGELES - At the height of the Cold War, President John F. Kennedy stood in front of the nation and boldly declared that sacrifice was something required of all Americans.

When he proclaimed, "Ask not what your country can do for you, but what you can do for your country," the American public took him seriously and was willing to forego short-term luxuries in exchange for long-term benefits. How times have changed!

Today, at the height of our war against Iraq, President George W. Bush is declaring a lot of things to the American public, but a call to sacrifice is not among the White House's declarations.

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Instead of focusing on issues that benefit the common good, Bush has been playing to America's greed, promising huge tax cuts for those who don't need it. It seems rather hypocritical of the Bush administration to call on some Americans (our troops fighting in Iraq) to make the ultimate sacrifice for their country, while giving benefits to others (the wealthy targets of the tax cut).

If the Bush administration were to have a motto, it could easily be "Ask not what you can do for your country, but what your country can do for your bank account." Now, I'm not necessarily criticizing the need for a tax cut.

Some economists, who know a lot more than I do about governmental fiscal policy, seem to think it's a pretty good idea. I'm criticizing Bush's timing.

It's completely inappropriate to be discussing a huge tax cut for the rich while soldiers, many of them poor, are dying.

Bush sends a mixed message to the American people when he asks so much from our troops - those he calls "our best citizens" - and so little from those who can afford to give much more.

Bush's proposal calls for a $674 billion tax cut and its centerpiece is a $300 billion tax reduction resulting from the elimination of the dividend tax. If you think I'm playing class warfare when I call it a tax cut for the rich, take a look at the numbers.

Let's use our soldiers as an example. Mark Shields, a nationally known columnist and CNN commentator writes, "Bush's tax break won't do much for those Americans doing the fighting, you see, because the base pay for a staff sergeant is $21,247.20 and for a first lieutenant it's $30,182.40, which would mean an average tax-cut for all American service personnel in those ranks or below of approximately $148." That's not enough to buy a quarter's worth of books at the UCLA bookstore.

What about the wealthiest Americans? Don't worry; they're well taken care of. Under Bush's plan, someone pulling in about one million dollars per year will get a tax break of approximately $90,222 - more than enough to pay for books, housing and tuition at the University of California at Los Angeles for more than six years. A tax cut for the wealthy? Obviously. Does it help those who are currently risking their lives to defend us? Not at all.

I'm not the only one who thinks this is the wrong time to discuss a huge tax cuts.

In his first "60 Minutes" debate with Bob Dole, Bill Clinton stated, "Never before have we had a big tax cut in times of national crisis. Lincoln didn't. FDR didn't. With over 200,000 young Americans in the Persian Gulf, we shouldn't. It's wrong and it's bad economics." Admittedly, Clinton is a biased source of criticism, but he makes a good point.

Traditionally, the United States has waited until the bullets stop flying to talk tax cuts. This is a good precedent to follow.

Victory in Iraq is a good thing and tax cuts are a good thing, just not together. With the war approaching a speedy end, President Bush should realize that his tax cuts can wait a few months out of respect for our soldiers. Kennedy's call for sacrifice is as applicable today as it was 40 years ago. Let's hope that Bush echoes his call and reminds people that in times of national crisis, Americans, both rich and poor, need to do whatever they can for their country. We can wait on the benefits of what our country can do for us.

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