If you didn’t catch Thursday’s edition of Your World with Neil Cavuto, here’s what you missed:
The Bush administration will soon announce that the federal budget surplus outside Social Security will be next to nothing by the end of this year and the political battle over who is to blame has already begun.
While a slowing U.S. economy has knocked corporate tax receipts down by an estimated $40 billion, congressional Democrats charge that President Bush’s tax cut — which sent $74 billion back to taxpayers — was too hasty. The White House argues that last-minute spending deals between the Congress and President Clinton last fall drained another $34.5 billion out of the surplus.
Asked whether the Bush tax plan caused the evaporation of the surplus, Lawrence Lindsey, special assistant to the president for economic policy, responded that the tax cut "is there to stimulate an economy that has been declining rapidly for over a year."
"If we didn't have that tax cut, we would be in much, much worse shape," Lindsey added. "The tax cut is there to sustain the economy to keep money in people's pockets. So that that this economy can grow again."
But Gene Sperling, former President Clinton's top economic advisor, places the blame squarely on the Bush administration’s tax cut.
"We had a $275 billion surplus," said Sperling. "This administration has taken away that cushion and now they look like Rosemary Woods stretching to make budget numbers work because of the problems they have created."
Here’s what you had to say about the issue:
If I have to live within my budget then WHY doesn’t our government? If I don't have the money I have to do without, but our government just keeps on spending. Why? There is no reason we should be in debt as long as we are still shooting billions into space, and for what?
[Sperling] is full of it, the downturn came as a result of poor outlook on behalf of the Clinton administration! Take energy as an example... where was the super deluxe policies on that? President Bush is using a time-honored tradition of getting an economy back into shape - tax reduction.
Did Clinton have pot parties or something when he was president because all of his former advisors you put on the air couldn't tell you which way is up. The truth of the matter is they're looking for a scapegoat after they screwed the economy over when they left office and are trying to save their asses by blaming it on bush. all that's left to say is that it's just a typical democrat way of life
News Flash: When the surplus gets smaller because of tax refunds, guess what? That's called subtraction and guess what else? It was expected, anticipated, and welcomed! Why the hubub about a shrinking surplus? We have a balance and that's what the government can spend. Period.
Lake Forest, CA
Just got thru watching your interview with Gene Sperling, the Dem advisor- a $ 6 trillion cost for Bush's tax cut ? Puh-Leeze ! That is the difference between Democrats and Republicans- Dems think that tax cuts cost money- Reblicans KNOW that tax cuts BRING IN more money to the Federal coffers because of higher sales revenues, resulting in even higher tax revenue overall, higher take home pay for individuals and more capital budgets in corporations result in higher overall sales, more than making up for the "cost " of the tax cuts.
Lakewood , CO
The democrats wanted this initial tax stimulus in the first place. Bush wanted a tax cut to span over the next 10 years. I don't understand how the democrats can blame Bush about the checks which is the part of the tax cut that was their idea in the first place. Didn't anyone have any idea in Washington how much money they have to spend?
I'm so sick of all the demagoguery on the tax cut. The only problem with the tax cut is that it's not big enough and it's too back loaded. We need a real capital gains tax to get this economy back on track and how about a lot less spending.
You can drag out all the left-over Clinton operatives and all the Larry Lindseys you want. This economy has tanked. If you didn't get your money out of the stock market 2 yrs ago...you're screwed...and it will take a lot of years to recover.
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