Dole Plan's Cost: $1 trillion

The Joint Committee on Taxation today estimated that GOP presidential nominee Bob Dole's huge tax cut plan would slash federal revenues by $1.1 trillion over 10 years, possibly costing the government 6 percent of the income it would have gotten over that period.

Republicans quickly tried to use the JCT figure to contrast Dole's tax cut plan with the one President Clinton presented. The JCT this week said Clinton's plan would raise taxes by $64 billion through FY2006 -- in part because its tax cuts expire in 2000 but the offsets are permanent.

"The 10-year estimate of the Dole plan contrasts sharply with the 10-year estimate of the Clinton tax plan," House Ways and Means Chairman Bill Archer, R-Texas, said in a statement. "While the Clinton budget calls for a tax hike, the Dole plan calls for a tax cut. The two plans represent very different government philosophies."

But a Ways and Means Democratic aide said the JCT estimate shows Dole's plan is "a budget buster" and warned Medicare and Social Security will have to be slashed to help offset the $1.1 trillion cost. "If that's the case, clearly the Republicans plan to put Medicare and Social Security on the chopping block next year," the Democratic spokeswoman said. "It's too big not to hit those things."

Archer's statement said Clinton's budget projects the government is expected to raise revenues of $18.2 trillion over 10 years -- and the estimated $1.1 trillion cost of Dole's plan is 6 percent of that. The JCT said Dole's proposed 15 percent across-the-board tax cut would cost $812 billion over 10 years.

Stay up-to-date with federal news alerts and analysis — Sign up for GovExec's email newsletters.
Close [ x ] More from GovExec

Thank you for subscribing to newsletters from
We think these reports might interest you:

  • Sponsored by G Suite

    Cross-Agency Teamwork, Anytime and Anywhere

    Dan McCrae, director of IT service delivery division, National Oceanic and Atmospheric Administration (NOAA)

  • Data-Centric Security vs. Database-Level Security

    Database-level encryption had its origins in the 1990s and early 2000s in response to very basic risks which largely revolved around the theft of servers, backup tapes and other physical-layer assets. As noted in Verizon’s 2014, Data Breach Investigations Report (DBIR)1, threats today are far more advanced and dangerous.

  • Sponsored by One Identity

    One Nation Under Guard: Securing User Identities Across State and Local Government

    In 2016, the government can expect even more sophisticated threats on the horizon, making it all the more imperative that agencies enforce proper identity and access management (IAM) practices. In order to better measure the current state of IAM at the state and local level, Government Business Council (GBC) conducted an in-depth research study of state and local employees.

  • Sponsored by Aquilent

    The Next Federal Evolution of Cloud

    This GBC report explains the evolution of cloud computing in federal government, and provides an outlook for the future of the cloud in government IT.

  • Sponsored by LTC Partners, administrators of the Federal Long Term Care Insurance Program

    Approaching the Brink of Federal Retirement

    Approximately 10,000 baby boomers are reaching retirement age per day, and a growing number of federal employees are preparing themselves for the next chapter of their lives. Learn how to tackle the challenges that today's workforce faces in laying the groundwork for a smooth and secure retirement.

  • Sponsored by Hewlett Packard Enterprise

    Cyber Defense 101: Arming the Next Generation of Government Employees

    Read this issue brief to learn about the sector's most potent challenges in the new cyber landscape and how government organizations are building a robust, threat-aware infrastructure

  • Sponsored by Aquilent

    GBC Issue Brief: Cultivating Digital Services in the Federal Landscape

    Read this GBC issue brief to learn more about the current state of digital services in the government, and how key players are pushing enhancements towards a user-centric approach.


When you download a report, your information may be shared with the underwriters of that document.