Bush Talks Up His Tax-Cut Plan on Deadline Day

Texas Gov. George W. Bush brought along a computer Monday to show voters in the competitive states of Arkansas and Michigan how his tax plan would save them money.

Speaking in the most conservative chunk of Arkansas on tax-filing deadline day, Bush told a packed gymnasium at Bentonville High School that his 5-year, $483-billion tax cut would prevent an economic downturn by returning extra government dollars to taxpayers.

To let people see how much they would benefit under the plan, Bush staffers set up a computer that featured a tax-saving calculator, also available on his Web site.

“Al Gore believes the surplus is the government’s money. I believe the surplus is the people’s money,” said Bush, who has all but locked up the GOP presidential nomination. “I can’t think of a better day than tax day to say that if I become president, I look forward to sharing some of that surplus with the people that pay the bills.”

After spending the last month trying to reclaim the political center by focusing on education, health care and the environment, Bush’s emphasis on taxes Monday amounted to a daylong defense of one of the most conventionally conservative parts of his platform.

His tax plan would cut the top rate from 39.6% to 33%, drop the lowest rate from 15% to 10%, and combine several of the middle class brackets. While the Bush campaign stresses that his tax cut would benefit all Americans, critics argue that richer taxpayers would benefit more from the plan.

In response to Bush’s Internet tax calculator, the Democratic National Committee set up a parallel Web site Monday called “Millionaires for Bush.” The tax calculator on Bush’s Web site does not allow anyone to input an income higher than $100,000 per year. The DNC Web site allows those making more than $1 million to see their savings by clicking on a button that says “What’s my take?”

Bush himself would benefit significantly under the plan, according to figures released by the Bush campaign Monday. Bush and his wife, Laura, paid $514,000 in taxes on an estimated taxable income of $1.3 million in 1999--about 39.5%.

About $98,000 of Bush’s income came from his salary as Texas governor. The rest came from capital gains income and interest earned under a blind trust set up after Bush sold his stake in the Texas Rangers in 1998 for $14.9 million.

Under Bush’s plan, he would pay $51,000 less in taxes, about a 10% cut, said Scott McClellan, a campaign spokesman. The Bushes gave $210,000 to charity, about 16% of their income.

Bush’s income is higher than that of the vice president, who released his tax figures Friday. Gore, the presumptive Democratic presidential nominee, paid $62,000 in taxes on an income of $240,930, about 25.8%. He donated $15,000 to charity, about 6% of his income.

Under Bush’s plan, Gore would pay $6,700 less in taxes, McClellan said.

“I want tax relief to go to everybody who pays the bills in America,” Bush told the Bentonville audience.

Bush appeared on stage in front of a new red, white and blue campaign banner emblazoned over and over with the phrases “tax relief,” “single moms,” “working families,” “middle class” and “prosperity.” He stood surrounded by single working mothers to emphasize that his plan is designed to provide tax relief to the working poor.

Kim Jennings, a 26-year-old bank worker on stage with Bush who paid $830 in federal taxes this year, would pay nothing under Bush’s plan. But Jennings, who relies on a government program to supplement the costs of child care for her young daughter, said she is unsure about the overall effect of Bush’s plan, though she believes it would benefit her.

“It sounds good in my favor,” Jennings said. “I haven’t had time to dissect it all.”

Bush’s tax plan would also eliminate the inheritance tax and reduce the so-called marriage penalty, in which some married couples pay more taxes than two single people living together.

Bush made a point on Monday of calling on the vice president to pressure Senate Democrats to pass a bill that would reduce the marriage penalty, which has been bottled up in the Senate.

“It’s time for Vice President Al Gore to stand up and show some leadership,” Bush said.

Bush said that he would continue to pursue his tax plan, no matter how far the stock market plunges, saying that it would send money back into the economy, where it would be needed.

Kathleen Begala, a Gore spokesman, called Bush’s tax cuts “risky,” and said he wouldn’t be able to pay for planned new programs in health care and education.

“This is a tax plan that will bankrupt the country,” Begala said.

Bush touched down late Monday for a rally at the airport in Battle Creek, Mich., where he was greeted by about 300 supporters and where he once again talked about his tax-cut plan.

In other news on Monday, Bush’s former leading challenger, U.S. Sen. John McCain of Arizona, met with Minnesota Gov. Jesse Ventura, an independent. Despite Ventura’s urging to run as a third-party candidate, McCain vowed to remain a Republican.