When the dust settled, Bush lost his 1992 re-election battle a result some people clearly hope will be replayed in 2004. But the tax-cut issue is about much more than political posturing and election battles. It reflects fundamental judgments about the role of government. It demonstrates whether we intend to keep America competitive in a world economy. And it reveals whether we will finally take an important step on the road to fundamental tax reform.
Politicians currently are awash in a sea of surplus tax revenue.
Unfortunately, one side effect of these surpluses is that politicians have lost the will to say no to special interest groups. With so much extra money floating around, politicians have doubled the inflation-adjusted growth of federal spending. There can be little doubt that failure to enact broad-based tax relief will undermine fiscal discipline in Washington. Put bluntly, it is unrealistic and foolish to assume politicians can resist the temptation to use the extra money, as shown by this year's bipartisan rush to increase spending. Yet while cutting taxes is a good strategy to control spending, it also is the right way to keep our economy strong.