"Is the Bush Economic 'Stimulus' Plan Effective, Fair, and Fiscally Responsible?"

January 21, 2003

"Even according to the Administration's own analysis, the proposals would have a negligible effect on economic activity during 2003 and would reduce job growth after 2004."
    - Peter Orszag, The Brookings Institution

"President Bush's new tax plan is an answer in search of a question."
    - William Gale, The Brookings Institution

"The tax cut President Bush is proposing would put only $50 in my pocket - for the entire year. Less than one dollar a week."
    - Frank Greene, Seaside Heights, New Jersey

"If I succeed in my job search and find work that pays me as much as I earned last year, the Bush plan would provide me with a tax reduction of about $500... When I learn that millionaires will receive tax cuts of $90,000 under President Bush's plan, I know that the plan wasn't designed for a middle-income person like myself."
    - Kevin Douville, Arlington, Virginia

"President Bush seems to have decided that the biggest problem facing America today is that the rich don't have enough money."
    - Robert McIntyre, Center for Tax Justice

"The proposal will diminish states' ability to provide services to those citizens who need them the most; those same citizens, with the greatest needs, get the least in direct relief."
    - Nancy Farmer, Missouri State Treasurer

"The Administration has said the plan is intended to promote economic growth and job creation. But when states must cut programs to balance their budgets, they lay off workers, reduce payments to contractors, cut reimbursements to providers, or lower benefit payments to individuals. This reduces the money people have to spend and thereby decreases demand for private sector goods and services."
    - Iris Lav, Center on Budget and Policy Priorities

Transcript

For a full transcript of the hearing click here.

Opening Statements

Senator Byron L. Dorgan
Chairman, Democratic Policy Committee

Representative Nancy Pelosi
House Democratic Leader

Senator Paul Sarbanes
Ranking Member, Senate Banking, Housing, and Urban Affairs Committee

Senator Kent Conrad
Ranking Member, Senate Budget Committee

Representative John Spratt Jr.
Ranking Member, House Budget Committee

Senator Tom Carper

Senator Jon Corzine

Senator Frank Lautenberg

Senator Mark Pryor

Panel One

Peter Orszag, The Brookings Institution

Chris Edwards, The Cato Institute

William Gale, The Brookings Institution

Panel Two

Frank Greene

Kevin Douville

Panel Three

Robert McIntyre, Citizens for Tax Justice

Nancy Farmer, Treasurer, State of Missouri

Iris Lav, Center on Budget and Policy Priorities