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George W. Bush On The Issues 2000

George W. Bush 2000 On The Issues

Budget/Use Of The Surplus

The federal government is expected to run a surplus of nearly $5 trillion during the next ten years. Governor Bush has proposed a balanced economic program that will use the surplus to prepare for the future, dedicating: half to saving Social Security by establishing personal retirement accounts and reducing the debt held by the public; one-quarter for pro-growth tax cuts; and the remainder to reform education, strengthen Medicare, and support other priorities.  As President, Governor Bush will bring taxes down from their record high level and pay the debt down to a historically low level.

Governor Bush’s Approach

Lock-box one-half of the surplus for strengthening Social Security by establishing personal retirement accounts and paying down the public debt: Within a decade, the massive Baby Boom generation will be eligible for Social Security.
  • Governor Bush has proposed a bold framework to save Social Security, rather than simply passing the burden to the next generation.  
  • He will set aside over half of the surplus to strengthen Social Security through personal retirement accounts and debt reduction.
  • Personal accounts are the best way to guarantee that the Social Security surplus is not used for other purposes.  
  • Governor Bush will also pay down a record amount of the debt held by the public, which will fall to the lowest level since the Great Depression (as a share of the economy).  
  • Both debt reduction and personal accounts will improve the economy by increasing national savings and investment.

    Reserve over one-quarter of the surplus for broad-based tax cuts: Governor Bush knows that hard-working Americans, not Washington, created the surplus.  
  • He will return about a quarter of the surplus directly to the people who pay the bills.  
  • As President Reagan demonstrated two decades ago, lower tax rates are the key to raising the standard of living for all Americans.
  • A sound tax plan is the best insurance policy against an economic downturn.

    Reserve substantial funds for other priorities: Governor Bush will use the remainder of the surplus for other important priorities like defense, Medicare, education, and the environment.

    Governor Bush’s Surplus Proposal

    Use of the Surplus:  Governor Bush

    2001-2010
    Baseline Surplus - $4.6 trillion
    Reserve for Social Security (personal accounts & debt reduction) - $2.4 trillion - 52%
    Broad Tax Cuts - $1.3 trillion - 28%
    Other Priorities & Additional Debt Reduction* - $0.9 trillion - 20%

    *includes savings of $0.2 trillion from government reform

    Texas Record

    Fiscal Discipline
  • Under Governor Bush, state budget surpluses have increased from $333 million to a high of $3.5 billion.
  • Governor Bush cut the growth of state spending to its lowest rate in 40 years.  When adjusted for inflation and population, state spending will increase only 3.6 percent between 1994-1995 and the end of the 2000-2001 biennium.

    Tax Cuts
  • Governor Bush has advocated and delivered the two largest tax cuts in Texas history:  $1 billion in 1997 and $2 billion in 1999.
  • Under Governor Bush, Texas has the 3rd lowest state tax burden in the country

Source: George W. Bush for President 2000 Web Site

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