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Monday, Jun 27, 2022

LABJ FORUM: The Debate Over Tax Cuts

LABJ FORUM

The Debate Over Tax Cuts

President Bush introduced an economic stimulus package last week that called for tax cuts for individuals and small businesses, a $400-per-child tax rebate for some families and the elimination of taxes on dividends, which the administration said would give investors an additional $364 billion over the next 10 years. Lauded by Republicans, the plan was derided by many Democrats, who charged it was another sop to the wealthy. So the Business Journal asks:

What do you think of President Bush’s economic stimulus package?

Joe Alexander

President

Park Regency

It’s a good idea to give taxpayers more of their money back. We’ve got to get something going. The real estate sector is doing very well but other sectors aren’t. We’ve got to get people back to work. And giving people their money back is better than the government keeping it.

Torie Osborn

Executive Director

Liberty Hill Foundation

I think its wrong-headed and a disaster for California, for the unemployed and low-income people. It’s an insult to the American people in the sense that it continues policies of expanding wealth of the already wealthy without directly addressing the short-term economic stimulus challenge. It’s the wrong approach benefiting the wrong people at the wrong time. I wish the President would serve up some real vision that would create more jobs, stimulate small business, and help middle income as much as he’s helping to create a plutocracy.

Christine Sisley

Executive Director, Treasurer

Fletcher Jones Foundation

My general philosophy is to be in favor of the stimulus package and to offer tax cuts and encouragement to businesses, which have to create the jobs so we can have more employment for people at all levels. Sure, some things could be improved, some tweaks and compromises. People that are in sectors that create the jobs need that encouragement, and we need short-term assistance for unemployed people.

Gregory Broughton

President

PCR Services Corp.

I support the measure that will help businesses in particular, as opposed to consumers. Putting money into personal hands, which distributes it across multiple households, will stimulate spending, not saving. I favor the decisions that support businesses, which will respond to investment stimuli.

Thomas Morrison

Senior Vice President

Segal Co.

I think it’s wonderful. The tax incentives are on target to produce investments and expand business in L.A. that will ultimately produce jobs. There are incentives for small businesses, which are now saddled with higher taxes. They will be able to reinvest in their business and take risks. It’s good for the L.A. business economy, jobs, real estate, etc.

Joseph Kessler

President

Weber Shandwick

California

Bush’s plan is more about politics and PR than it is about sound economic policy. This so-called “economic stimulus package” is merely a euphemism for “tax cut,” and historical evidence suggests that cutting taxes is not an effective way to stimulate economic growth. The best economic climates have coincided with balanced federal budgets. I’m concerned that the cost of these tax cuts will plunge our country further into debt and thereby force the government to cut vital programs for those who really need it the working poor and under-employed middle class Americans.

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