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.
FROM OUR SPONSORS
JOIN THE DISCUSSION
Close [ x ] More from GovExec
 
 

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

  • Forecasting Cloud's Future

    Conversations with Federal, State, and Local Technology Leaders on Cloud-Driven Digital Transformation

    Download
  • The Big Data Campaign Trail

    With everyone so focused on security following recent breaches at federal, state and local government and education institutions, there has been little emphasis on the need for better operations. This report breaks down some of the biggest operational challenges in IT management and provides insight into how agencies and leaders can successfully solve some of the biggest lingering government IT issues.

    Download
  • Communicating Innovation in Federal Government

    Federal Government spending on ‘obsolete technology’ continues to increase. Supporting the twin pillars of improved digital service delivery for citizens on the one hand, and the increasingly optimized and flexible working practices for federal employees on the other, are neither easy nor inexpensive tasks. This whitepaper explores how federal agencies can leverage the value of existing agency technology assets while offering IT leaders the ability to implement the kind of employee productivity, citizen service improvements and security demanded by federal oversight.

    Download
  • IT Transformation Trends: Flash Storage as a Strategic IT Asset

    MIT Technology Review: Flash Storage As a Strategic IT Asset For the first time in decades, IT leaders now consider all-flash storage as a strategic IT asset. IT has become a new operating model that enables self-service with high performance, density and resiliency. It also offers the self-service agility of the public cloud combined with the security, performance, and cost-effectiveness of a private cloud. Download this MIT Technology Review paper to learn more about how all-flash storage is transforming the data center.

    Download
  • Ongoing Efforts in Veterans Health Care Modernization

    This report discusses the current state of veterans health care

    Download

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