The difference is that while the Clinton plan is also bad, it's too small to do much harm. The Dole plan is vague about where the spending cuts will come from to pay for the tax cuts. But Dole's cuts would do real damage. YES Federal taxes are at their highest level in history. Taxes on individuals have increased 2 percent since 1993.
Economic stimulation is a key component of the tax cut.
From the fourth quarter of 1992 through the second quarter of 1996, real Gross Domestic Product has increased by an average of just 2.4 percent per year, well below the economy's historic growth rate of 3.1 percent. Opponents contend that Dole is repeating the mistakes of the Reagan tax cuts which they claim led to economic disaster. In fact, the Reagan tax cut had nothing to do with the increase in deficits in the 1980s. In fact, federal receipts as a share of GDP were higher in the 1980s than in the 1970s. From 1982 to 1989, real growth averaged 3.9 percent per year.