Cutting Debt is Key Component to Tax Cuts

Posted by accountingweb on Sep 10 1999 140 printer friendly

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

Even though any accounting auditor would tell you it seems like there are an awful lot of tax accountants out there, surely one-third of the country isn't made up of tax preparers, so it's rather startling news to learn that one-third of Americans like to do their taxes. Who knew?

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