Debt Reduction, Middle-Class Tax Cuts, Responsible Investments or a Massive Tax Cut for the Rich that Busts the Budget

"On November 7th, we face one of the biggest choices America has faced in a generation: a choice of priorities, a choice of values, a choice as fundamental as prosperity itself. Will we seize this moment to extend prosperity and share it widely, or will we just lavish more on those who need it least, and hope the benefits trickle down to everybody else? Will we make the right choices and the right investments to keep our economy growing, or will we bust the budget and shortchange the future for a massive tax cut for the few?" -- Al Gore

Al Gore focuses on the big choices voters face on the economy. Building a foundation of fiscal discipline, Gore would eliminate the national debt and its interest payments and offer middle-class tax cuts so all Americans can share in the nation's prosperity. In contrast, George W. Bush would use the nation's hard-won prosperity for a massive $1.6 trillion tax cut that primarily benefits the wealthy and leaves few resources to invest in the country's future and extend prosperity to all Americans.

More than 300 prominent economists agree that Bush's economic priorities would not only drain the nation's surplus but also raise interest rates and hurt the national economy. These economists -- including eight Nobel laureates -- have signed a statement calling Bush's massive tax cut "irresponsible" and affirming that Gore's tax cut for the middle class "makes more sense." The statement warned that Bush's tax cut would return the government to the days of deficits and leave few resources to invest in other important priorities such as education and health care. It also criticized Bush's plan for targeting a disproportionate share of its benefit toward the wealthiest Americans.

"Let's cut to the heart of the matter: both sides in this election have proposed targeted tax cuts," said Gore. "The difference is the Bush plan targets the wealthy; Governor Bush came right out and admitted it in Tuesday night's debate. My plan targets the middle class."

A FOUNDATION OF FISCAL DISCIPLINE
Gore would eliminate the national debt. Gore would devote the largest share of the surplus to paying down the national debt and eliminating the debt by 2012. More federal money is spent on interest payments on the national debt than on the Medicare program and interest payments on the debt constitute the government's third largest spending program. Gore's plan to eliminate the debt will free up resources for the nation's businesses to increase investment and productivity growth. Debt reduction will also keep interest rates low to help families afford home mortgages, student loans and car loans.

Bush would overspend the surplus. His $1.6 trillion tax cut drains much of the budget surplus. Bush's plan to privatize Social Security would cost another $1 trillion, in addition to $600 billion in other spending that he has proposed.

MIDDLE-CLASS TAX CUTS
Gore would offer $500 billion in targeted tax cuts. Gore would use the nation's prosperity to help working and middle-class families afford higher education costs and health care and long-term care expenses.

Bush's $1.6 trillion tax cut leaves few resources. Bush's massive tax cut does little to help families afford higher education and child-care costs and pay for long-term care.

PROTECTING SOCIAL SECURITY, IMPROVING RETIREMENT SECURITY
Gore would protect and expand retirement security. Gore would place Social Security in an off-budget "lock box," so that surpluses could only be used for the federal retiree program or to pay down the national debt and not for massive tax cuts or pork barrel spending. He would also create Retirement Savings Plus accounts to encourage families to save tax free for retirement and supplement -- not replace -- their guaranteed Social Security benefit.

Bush drains $1 trillion from Social Security. Bush's strategy to privatize the retiree program would drain $1 trillion from the Social Security surplus and threaten the Social Security Trust Fund for the first time ever, forcing a choice between benefit cuts up to 54 percent or bankrupting Social Security 14 years early.

RESPONSIBLE INVESTMENTS
Gore makes health care investments a priority. He would devote a portion of the budget surplus to expand access to health insurance to all children. He would invest to finish hiring 100,000 new teachers, reduce class sizes and help communities construct new schools. To make sure seniors have a secure and dignified retirement, Gore would improve Medicare with a voluntary prescription drug benefit for everyone on Medicare.

Bush's tax cut would leave few resources to invest in health care. He has no plan to expand health insurance to all children. He diverts $100 billion of the Medicare surplus to the wealthiest 1 percent of Americans through his tax plan. His prescription drug plan would leave millions of seniors without real coverage and could raise premiums and force seniors into HMOs.

When Gore and the current administration took office in 1993, they faced a budget deficit of $290 billion. Last month, the administration confirmed that this year's budget surplus would reach at least $230 billion, consistent with a previous estimate from the Congressional Budget Office (CBO) of $232 billion. This announcement lends more credit to CBO surplus projections on which Gore has based his economic plan. CBO projects a $4.561 trillion surplus over the next ten years -- $1.813 trillion with Social Security and Medicare taken off budget.