EDITORIAL Tax cuts leave shredded safety net
We have for many years been
bombarded with propaganda warning us of the dangers of big government. We
seemed almost to have reached a consensus that the stock market would continue
on its merry upward course indefinitely if only the state would stop
interfering.
Today the mood has changed radically. The damage, both material
and moral, inflicted last month by terrorist attacks on New York and
Washington, is enormous. Massive public intervention is essential, both to help
the many who have been directly affected and to stimulate the faltering
economy.
On the need for government action there is unanimity. But there is
deep division regarding the form it should take. Just a week after the Sept. 11
catastrophe, The Wall Street Journal proposed one option. It told the
president to use the unique political climate to assert leadership
not only on foreign affairs but on home affairs, too. It specified where he
should start -- more tax cuts, drilling for oil in Alaska, Fast Track authority
to expand to the entire hemisphere the disastrous NAFTA benefits for the
transnational corporations, and raids on the Social Security surplus.
President Bush was obviously reading The Wall Street
Journal. Using the wave of fear and anger and the intensification of the
already deteriorating economic situation that followed the pulverization of New
Yorks twin towers, he is now rolling back the nations
already-mangled social services and further expanding the bloated military. On
Oct. 24, the House passed 216 to 214 his tax cut bill, which will cost us $159
billion over 10 years.
For the ultra-rich and prosperous giant corporations, which get
the bulk of the cuts, it is good news. Long-term capital gains drop once more,
from 20 to 18 percent. The airlines, which already got $5 billion after Sept.
11, get another $15 billion. Enron of Houston, which made billions because of
energy deregulation in recent years, gets $254 million. It does not matter that
the Securities and Exchange Commission is investigating it for falsifying
reports. The company was the biggest contributor to Bushs election
campaign.
The unemployed, though, get a paltry 3.2 percent.
One serious result of these cuts is that 44 states and the
District of Columbia will lose $5 billion each in tax revenues. Because states
must balance their budgets, they will be forced to make new cuts in social
services. Rep. Charles Rangel, D-N.Y., got it right when he described the bill
as a very horsy horse-and-rabbit stew -- one horse, one rabbit.
Meanwhile a long cold winter awaits the poor as many lose jobs and
confront a shredded safety net.
Far different from the solution to the crisis offered by
The Wall Street Journal and endorsed by the administration is
that presented in a letter sent to the president Oct. 18 by the leaders of the
countrys major religions. The letter -- signed by the heads of the
Conference of the Major Superiors of Men and the Leadership Conference of Women
Religious, the major Protestant denominations, the Islamic Society of North
America and the Union of American Hebrew Congregations -- pleads for the 31
million Americans who live with hunger.
With the economy sputtering and lay-offs mounting by the
tens of thousands, those at the bottom are hardest hit. They have no
medical help. They have no money to pay their utility bills this winter. Moral
as well as social reasons demand that they be put first. The federal minimum
wage should be increased by $1.50. More money, these interfaith religious
leaders urge, should go to the Food Stamp Program and to the Special Nutrition
Program for Women, Infants and Children, often referred to as the WIC.
The nutrition program was already grossly underfunded before the
Sept. 11 crisis. According to the Washington-based Center for Budget and Policy
Priorities, the underfunding in last Julys House allocation was such that
345,000 qualified children and infants had to go undernourished. With
todays increased caseload, even more will stay hungry this winter.
The Sept. 11 crisis has created yet another unanticipated problem.
The magnificent national response -- more than $1.2 billion -- to the enormous
suffering has siphoned off charitable contributions that would otherwise go to
aid agencies. All of them are taking in less than is normal as winter closes
in.
In an Oct. 30 editorial, The New York Times urged the
Senate to block the House measure and insist on a radical reversal of
priorities. Several senators have taken initiatives in this direction. Sen.
Edward Kennedy, D-Mass., for example, has put forward an alternative bill that
would help low-wage workers and the unemployed.
For the Senate at this time, a reversal of priorities -- and
government intervention to aid the needy -- is both an opportunity and a
historic duty.
National Catholic Reporter, November 9,
2001
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