Tax Bill by Saturday Jude Wanniski May 20, 2003

I've just learned that President Bush has decided he definitely wants a tax bill on his desk by Saturday and has instructed the GOP congressional leaders to work out the details. Most significantly, he opted for the House policy that includes the 5-15 capital gains and dividend tax cut over the Senate version that passed last week which would have eliminated the double tax on dividends, but with a sunset provision that would have impaired its effectiveness. The package will undoubtedly include the Senate provision for a $20 billion distribution to states for budget relief, which is what picks up the Democratic votes needed to get the bill passed. I don`t have any further details, although it is clear President Bush understood the House version, even at $400 billion with a few revenue offsets, would be more effective in expanding the economy right away than the Senate version.