The new tax cuts draw battle lines with Democrats in the run-up to the November elections for control of Congress. Democrats, who control the Senate, say Bush's plan would deepen federal budget deficits and undermine Social Security as the baby boom generation approaches retirement. But the tax cuts are popular with businesses and other key constituents. Bush will need their help if Republicans are to retake the Senate and extend their slim majority in the House of Representatives.
Under Bush's plan, small businesses would be able to write off more of their equipment expenses, as well as pool their resources to reduce the cost of providing health care coverage to employees. Bush would also repeal estate taxes.
Moderator Comment: Should Congress approve President Bush's tax cut proposals? Why?
Talk about taxation with representation. The estate tax issue has turned into a lucrative business for just about everyone but heirs. Warren Buffet and others may not agree, but the estate tax needs to go - it never should have been. [George Anderson - Moderator]