Bush Gives Fiery Defense of Tax Cut

President Bush fired the first shots of the 1990 congressional election campaign today and, in fiery defense of his capital gains tax-cut proposal, said, “I’m sick and tired of the demagogues who call this a tax cut for the rich.”

Departing from a prepared text on farm issues, Bush recalled that in his January, 1989, Inaugural Address he held out a hand to the Democratic majority in Congress and told them that the voters “did not send us here to bicker.”

But he said at the American Farm Bureau convention today that his conciliatory attitude had been met by Democratic stalling on his proposals for a cut in capital gains taxes, for anti-crime measures and on clean air.

Well aware that all 435 seats in the House of Representatives and 34 of 100 Senate slots will be up for renewal in midterm elections this November--the first such power test since he took office--the President waded into the Congress’ Democratic-majority leadership before the lawmakers had even returned from Christmas holidays.

“Now a year has passed, a new year has begun and it’s time, it’s past time, for Congress to tend to some of this unfinished business,” he said.

“America wants it done responsibly and America wants it done now,” he added of his legislative package.

He made a special appeal for a tax cut on capital gains--profits made from investments--which has been a favorite Bush project since the 1988 presidential election but one derided by critics as a special break for those wealthy enough to have such investments.

A capital gains cut was blocked by the Democratic leadership on Capitol Hill even though it won approval in the House and appeared to have support from most of the Senate.

“The fight isn’t over yet, and I am sick and tired of the demagogues who call this a tax cut for the rich,” Bush thundered. “It means jobs, it means savings and it is good for all Americans.”

He wants to reduce the top tax rate on long-term investment profits from 28% to 15%.

Most political experts say the capital gains proposal has a good chance of passage this year.