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Bush Proposes Cuts in Texas Sales Taxes

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<i> Reuters</i>

Texas Gov. George W. Bush, a possible Republican presidential candidate in 2000, moved to bolster his image as a tax-cutter Thursday by asking the state Legislature to trim sales taxes on some items.

The proposed cuts, on items such as diapers, nonprescription medicines and Internet access, would save consumers about $400 million, or $70 per family, over the next two years, he told a news conference.

Bush said tax cuts were possible because the state government is expected to have a $3.7-billion budget surplus next year. There will be no immediate action on Bush’s proposal because the Texas Legislature is not in session until January.

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