Cutting Debt is Key Component to Tax Cuts
The debate on tax cuts continued to rage when Treasury Secretary Lawrence Summers said this week that reducing the Federal debt was the only way to continue maintaining a strong economy.
Although it is widely expected that President Clinton will veto the recommended $697 billion tax cut passed by Congress last month, Summers believes that reducing debt is important to a tax cut for families because a reduction lowers interest rates while increasing investments. As a result, jobs are created.
The recommended Republican tax cut prescribes cuts of 50 percent or greater in domestic non-defense discretionary government programs. Summers is concerned that large tax cuts could facilitate reductions in key government activities or Social Security and Medicare.
Voice of the Editor
Which isn’t completely true. I mean, occasionally I drop by when I manage to sneak out of the nonstop frat party over at Going Concern, but I’m mostly a wallflower over there. I’m happy to say that I’ve been given express permission (or explicit orders, if you like) to wander over here to AccountingWEB more often.
Why is that, you might ask? My job is to replace the irreplaceable Gail Perry as Editor-in-Chief. What does that mean? I don’t really know! I think it’ll be fun getting a feel for things, throwing in my own thoughts here and there, and listening to the discussions you’re having about the accounting profession.