Jobs Report Sparks Tax-Cut Proposals Wall Street Journal Online (09/10/01) Vol. 104, No. 37 p.A1; McKinnon, John D.
As the economy sputters and continues to slow down, Democrats and Republicans are eagerly scrambling to find the best avenue toward economic recovery. Democrats have discussed a broadening of the current tax rebates, allowing those that only paid payroll taxes, which support Social Security and Medicare, to receive rebates as well. However, others contend that dipping into the surpluses of Medicare and Social Security would be a bad idea, but a reduction in the Social Security tax itself or cutting the capital gains tax may not be bad ideas. On the other hand, the Treasury Department has proposed that dependents and nonresident aliens be allowed to claim the current tax break on their 2001 tax returns, which would total about $1 billion, which is $39 billion less than the rebate checks issued this year. A spokesman from the Bush administration implied that the president may agree with the Treasury Department.