SHORTLY AFTER the first plane hit the World Trade Center on September 11, Texas senator Phil Gramm called Georgia senator Zell Miller. “I think we should call off today’s press conference,” Gramm, a Republican, told his Democratic counterpart. Gramm told Miller to turn on a TV. Together on the phone, the two senators watched as the second plane tore through the other tower. There was no press conference. It wouldn’t be the last time their proposal–a bill that would make permanent the Bush tax cuts and reduce the capital gains tax rate–would be obscured by the war on terrorism. On that day, it was the attack. Last week, it was President Bush’s “axis of evil” warning in the State of the Union. That comment overshadowed one Bush made moments later: “For the sake of long-term growth and to help Americans plan for the future, let’s make these tax cuts permanent.” The pundit class and media generally have thus far paid little attention to Bush’s tax cut remarks. But that will likely change early this week, when Senators Gramm and Miller will offer it–with the administration’s blessing–as an amendment to the economic stimulus package. Miller points to the recession and says their plan is “really more important now than it was when we first introduced it. I’m a history professor by training, a job I may return to soon. But if I read my history correctly–and I’m thinking of Reagan and Kennedy–every time we’ve done this, it’s had a stimulative effect.” Reinvigorated by Bush’s comments last week, there will likely be a flurry of tax cut proposals this week. The Gramm-Miller amendment would make permanent the rate reductions in the Bush tax cut passed last year, and tacks on a reduction in the capital gains tax rate from 20 percent to 15 percent. Arizona senator Jon Kyl also plans to offer language that would kill, for good, the death tax. Tax cutters anticipate efforts by Majority Leader Tom Daschle to avoid another vote on the tax cuts. “If they can find a way to stop it procedurally, I’m sure they will at least try,” says Miller. That’s because politically, Bush’s proposal on taxes in the State of the Union last week could have a greater effect on the 2002 elections that anything he said about the war on terrorism. Twelve Senate Democrats voted for the Bush tax cuts. Six of them are up for reelection this year–three in states that Bush won in 2000. Any additional votes on those tax cuts would shine a bright spotlight on those Democrats who supported the president the first time. And if Daschle continues to attack the tax cuts, the position of those six Democrats becomes even more uncomfortable. Polls taken shortly after Bush’s speech show Americans believe–by a 3-to-1 margin–that the president’s latest tax proposals will help the economy. By a 2-to-1 margin they favor Bush over congressional Democrats to handle the economy. It’s worth noting that these responses came after Daschle and Ted Kennedy spent a month trashing Bush’s tax cuts–blaming them for the recession, deficits, premature balding, and the popularity of boy bands. Bush’s proposal is already having a political impact. Texas attorney general John Cornyn, who is running to replace Gramm, immediately backed the president. “When it comes to taxes, I agree with President Bush–tax cuts passed last year should be made permanent,” he said. A spokesman for former Missouri congressman Jim Talent, a Republican who is challenging Senator Jean Carnahan, says their campaign and Missouri voters will be watching the upcoming tax votes with interest. Carnahan voted for Bush’s tax cuts the first time around. Carnahan spokesman Tony Wyche says his boss hasn’t decided whether she’d vote to make the tax cuts permanent. She “wants to look at it in the context of the budget that will be released tomorrow.” Rich Chrismer, a spokesman for Talent, says the ex-chairman of the House Small Business committee supports Bush’s plan. “Jim Talent supported President Bush’s original economic security plan, and he would certainly be supportive of measures to make those tax cuts permanent.” At least some of the impetus for the reinvigoration of these proposals comes from attempts by prominent Democrats to blame Bush tax cuts for the recession, or even call for their repeal. “Once Senator Daschle raised this whole thing again, and then when Senator Kennedy talked about holding off, I just thought it was time for me to speak up,” says Miller. “There was a time when Democrats were tax-cutters. I’d like to bring that time back.” His colleagues will have a chance to help him–and maybe help themselves–this week. Stephen F. Hayes is staff writer at The Weekly Standard.
