Tax Cuts Divide Democratic Presidential Candidates in Iowa

The unusual radio-only debate between six Democratic presidential candidates revealed a sharp distinction in the field: whether to raise taxes on middle-class Americans. Senator John Kerry and Senator Joseph Lieberman criticized Howard Dean and Representative Richard Gephardt for proposing to reverse middle-class tax cuts passed under President Bush. Kerry proposed eliminating tax cuts that benefited wealthy Americans but not the cuts that benefited the middle-class. He invoked the plight of two Iowa residents, divulging their incomes and potential new tax bills if Dean and Gephardt's plan were implemented.

Key Takeaways:

• Senator John Kerry proposed eliminating tax cuts that benefited wealthy Americans but not the cuts that benefited the middle-class.
• Kerry's plan would add to the burden of two Iowa residents, taking away their child credit, 10% bracket, and increasing their taxes by 15%.
• Senator Joseph Lieberman aligned with Kerry, stating that a Democratic candidate for president has never called for a massive increase in taxes on the middle-class.
• Howard Dean defended his position, arguing that he was not alone in calling for the repeal of the Bush tax cuts.
• Dean scolded his opponents for promising voters tax cuts and programs without explaining how they would be funded.
• Dean's opponents, except Representative Richard Gephardt, argued that Dean's plan would hurt middle-class Americans.
• Representative Gephardt argued that the repeal of the tax cut was an appropriate trade-off to finance his national health care plan.
• Senator John Edwards skipped the debate, deciding that attending a two-hour radio debate was not the best use of his time.
• Senators John Kerry and Joseph Lieberman, along with Representative Dennis Kucinich, used the debate to criticize Howard Dean's tax plan.
• Dean responded by noting that he had won the endorsement of both Bill Bradley and Al Gore, and that his campaign was bringing in new supporters to the party.

Statistics:

• The Bush tax cuts provided a 10% bracket and increased the child credit.
• The repeal of the tax cuts would add to the burden of middle-class Americans, increasing their taxes by 15% and reinstating the marriage penalty.
• Dean's national health care plan would be funded by repealing the tax cuts.
• General Wesley K. Clark's tax proposal would cut taxes on the poor and middle-class, while substantially raising the burden on millionaires.

Sources:

• "Iowa 'Virgin' for Radio Debate, NPR Challenges Compromise", by Richard Pérez-Peña, The New York Times
• "Clinton's Criticisms of Brown", by Timothy M. Phelps, The New York Times