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Tuesday April 17, 2001

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President argues 'excessive' taxes could cut into U.S.

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Associated Press

President Bush talks about his tax plan while speaking to members of the U.S. Chamber of Commerce yesterday in Washington. The president made a Tax Day pitch for tax cuts, telling business leaders, "Enough is enough. People in America deserve tax relief."

By The Associated Press

WASHINGTON - President Bush marked the income-tax filing deadline yesterday with a sales pitch for his proposed tax cuts, arguing that heavy taxes levied to pay for government spending jeopardize the U.S. economy.

"Excessive federal spending threatens economic vitality," Bush told the U.S. Chamber of Commerce as he stood flanked by a pair of oversized 1040 tax forms.

Bush stepped up his criticism of lawmakers who don't see it his way, casting them as squanderers of public money. And he expressed his irritation at the Senate for approving a $1.2 trillion tax cut - smaller than the $1.6 trillion cut he seeks.

He complained that the Senate has approved a plan that increases discretionary spending by 8 percent. He is trying to keep it at 4 percent.

"The Senate approved most of my tax plan but wants the government to spend far more," Bush told a crowd of nearly 400. "Some members of the Senate are, unfortunately, proving the point I make all across the country: If you send it, they will spend it."

In another half-joking slap, he said this year's tax collections will yield $2 billion for every federal lawmaker. "I think they should be able to get by on that - even the senators," he said.

And he cautioned against news media distortions of his plan, saying: "It's important for you to not let the filter decide what's reality and what's not reality."

The business community strongly backed Bush in his campaign last year. The chamber audience gave him three standing ovations during his remarks and interrupted him six more times with applause.

Bush took pains to promote the main street appeal of his tax-cut proposals, stressing the benefits to small business and to "working families," helping them buy gas and groceries. Though his remarks were to industry leaders, he never mentioned corporate profits or stock values.

Bush appeared with one of his signature "tax families," people he has presented to put a human face on his proposals, and mentioned a second tax family he met recently in Atlanta.

According to Bush, the federal government's tax revenues will represent a larger share of the national economy than they did during the Vietnam War or any year of World War II except one. He didn't specify which one.

"Our country is at peace, but our government is charging wartime prices," Bush said. "Enough is enough. The American people deserve tax relief."

Federal tax receipts represent 20.6 percent of the nation's gross domestic product. The level hasn't been that high since 1945, when it was 20.4 percent.

Many experts say the reason the overall tax share of the economy has risen is money collected from high-income people, especially capital gains taxes on investments. The Joint Committee on Taxation estimates that families earning between $30,000 and $50,000 pay about 6 percent of their income in federal income taxes and the average for all families is 12.3 percent.

Despite his pokes at the Senate, Bush is anxious to win over Senate Democrats on his economic plan. He said Sen. Max Cleland, D-Ga., was "interested in supporting the $1.6 trillion plan."

Cleland spokesman Patricia Murphy said the senator was committed to the $1.2 trillion figure the Senate approved earlier this month in its budget resolution. "He's not ready to support $1.6 trillion," she said.

But Cleland has left the door open to eventually going above the $1.2 trillion in future years.