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.