What is the first thing most American families would do if suddenly , pleasantly , faced with extra income? Would they spend all of that extra income on a Caribbean cruise or a brand-new Lexus? Not if they have been putting off needed repairs on their home and car or have debt to pay off.
After eight years of prosperity, that is the situation the federal government now faces. America is finally living within its means and has a growing surplus. The question is, what do we do with this surplus?
First, some of that money should be returned to the taxpayers. I support a reasonable and fair tax cut. Too many families are struggling just to meet their basic expenses, let alone save for the future. These families deserve tax relief.
But any tax cut should be done in the context of our entire budget. I guess I try to look at the federal budget the same way I look at my own budget at home , the way most Americans would look at a budget. That is why I am opposed to President George W. Bush’s huge tax cut that will be over $2 trillion! And it’s based on projected surpluses that are just that , projections.
Sustainable Tax Cut
I support a tax cut , but it must be fair to all Americans and not threaten our economic prosperity. Again, I bring it back to an ordinary household budget. If you are carrying big debt, the first thing you should do with extra income, is pay that off. As most Americans know, interest on debt is expensive. For the federal government, it is the single biggest item in our federal budget. If we can pay that off, we further decrease the need for federal funds for this purpose in the future , increasing the likelihood of sustainable tax cut down the road.
By paying off the national debt, we also lift that burden from future generations. Let’s be fair. We racked up those debts over the last 20 years; let’s pay it off before it becomes a burden for our children and grandchildren. And perhaps most importantly, paying down the debt helps keep interest rates low. That means a whole lot more to middle-income, working Americans’ budgets than a tax cut. Lower interest rates make buying homes, cars and other big-ticket items more attainable for all Americans.
‘Deferred Maintenance’
The second thing you would do is pay for what I like to call “deferred maintenance.” That is, repairs, improvements or replacements to your household that you have put off because you didn’t have the money , things like buying a new washing machine, repairing the roof or putting new tires on the car.
The government has its share of deferred maintenance, too. There are many programs that need updating. Medicare, for example, when created in 1965 did not include a prescription drug benefit because prescription drugs were not used as they are today. Prescription medicines are an important part of taking care of our health today , especially for our seniors. In the past, the government didn’t have the money to fund a program like this. Now we do. And we owe it to our seniors to provide this benefit before we start cutting taxes for the wealthy.
We also have deferred our commitments to our children’s education. President Bush has called on increased accountability and standards in education. I support that. But that will require funding. You can’t expect schools to improve with crowded and outdated classrooms. That means helping schools hire qualified teachers, expand and renovate aging classrooms , especially in disadvantaged communities , and supporting safety and discipline with after-school, and safe and drug-free school programs.
Now Or Never
Other deferred maintenance items include: Shoring up Social Security and Medicare so it will be there for today’s young workers; improve the quality of life for our military families, including pay, housing and benefits; and needed improvements in election reform, law enforcement and the environment. And let’s finally honor our contract with our nation’s veterans!
If we don’t do these things now, we may not have the money later to do them. And we should. There will still be money left over for a fair and reasonable tax cut that benefits all Americans, not just the privileged few.
Once we budget for these things , debt reduction, Social Security and Medicare solvency, providing quality health care for our veterans, prescription drugs for seniors, improved education , then we can cut taxes as part of an honest, responsible budget that balances all the priorities of America’s working families.
We do not want to go back to the failed, trickle-down economic theories of the past. Let’s pay our bills, invest in our future and then pass a tax cut that is fair to all Americans.
Filner represents California’s 50th congressional district.
