Conservatives Urge Bush to Back Tax Cut

Conservative Republicans, stepping up pressure on President Bush as he nears renomination, have called on him to support an across-the-board cut in income tax rates as part of an effort to draw a contrast to Democratic presidential candidate Bill Clinton.

The group, which includes Housing and Urban Development Secretary Jack Kemp, has prepared a letter to Bush and senior campaign officials calling for a reduction in the lowest tax rate, from 15% to 12%, and a cap of 28% on the top rate, which in some instances is 31%.

Senior reelection campaign officials denied having any problems with Kemp, a member of Bush’s Cabinet, signing a letter that calls on the President to “reassert bold leadership” on the economy just as the GOP hopes to present a picture of a unified party at its national convention, which begins Aug. 17 in Houston.

“Jack has been constructive,” said one senior official, speaking on the condition of anonymity. “Everyone knows the economy is the No. 1 priority in front of us. Some people think you stay with what you have; others think you need further pro-growth policies.”

Nevertheless, the letter, which was completed Friday, demonstrates the unresolved disagreements within the party as the general election campaign heats up and the economy shows no sign of a dramatic turnaround. And by broaching the issue of tax cuts, it could remind some voters of the “no new taxes” pledge that Bush broke in 1990.

In addition to Kemp, the letter was signed by Bush campaign co-chairman Rep. Vin Weber (R-Minn.), Rep. Newt Gingrich (R-Ga.), Sen. Connie Mack (R-Fla.), Sen. Trent Lott (R-Miss.), Sen. Bob Kasten (R-Wis.) and Sen. Malcolm Wallop (R-Wyo.).

Gingrich said the group wanted to “dramatize our commitment to economic opportunity and jobs,” while Republican platform writers put on finishing touches this week in Houston.

In addition to the cuts in tax rates, the letter calls for such steps as a reduction of the capital gains tax to 15% in many cases and to zero for long-term investment.

To pay for the tax cuts, the group advocates several steps to “restructure, downsize and redefine” government by freezing domestic spending, capping entitlement programs, including Social Security benefits, and privatizing the National Weather Service.

Arguing that Clinton’s economic policies would bring about a large tax increase, Gingrich said: “You have a chance to draw a dramatically wide contrast.” He would not say to which Clinton proposals he was referring.

Bush campaign officials said the conservatives’ proposals stemmed from a series of meetings Bush and senior campaign aides held over the past three weeks with congressional Republicans. The message at these meetings, a campaign official said, was “you’ve got to really do things differently; a new economic proposal has to be the centerpiece of it.”

The arguments in the letter are consistent with a wing of the party that believes tax cuts for individuals and businesses will reinvigorate the economy. Other conservatives, however, contend that the government must act first to reduce the deficit.