Apparently, President Clinton doesn't get it. The budget deficit, serious though it was, did not in and of itself define the problem with the federal government. It was an impediment to tackling that problem, which is that Americans are taxed too much.
While we've been reluctant to urge Congress to cut taxes this year - a strong economy finally has brought revenues up to the level of government spending, and the nation ought to look toward fixing Social Security and tackling the $5.4 trillion national debt - we are struck by this thought: Tax cuts are better than expenditures. If the president doesn't want to begin solving problems and retiring the debt, wouldn't it be better to return money to the people rather than starting new programs?Of course, Congress couldn't do that because much of the money in the president's budget doesn't exist yet. The president is counting on Congress approving a $65.5 billion settlement with the tobacco industry. No one expects that approval to come easily, if it comes at all. And his budget includes a whopping $105.6 billion in tax hikes and user fees, adding greatly to the burden Americans already face.
We wonder, too, what happened to the president's challenge in his State of the Union speech? He asked Congress not to approve any spending of a budget surplus until it had fixed the looming Social Security crisis. Instead, Clinton has proposed spending money that otherwise might add to his proposed $9.5 billion surplus, if it materializes at all. He, and the Republicans who control Congress, also seem to be forgetting that a current Social Security surplus is helping to prop the overall budget. So long as this subsidy continues, any claims that the budget is balanced will be false.
Clinton's new programs come in a variety of shapes and sizes. All have been conveniently pre-tested in opinion polls and found to be popular. They include cancer research, child-care credits and incentives for automakers to help fight global warming with fuel-efficient cars. Medicaid would be expanded, local school districts would get more teachers and parents would be reimbursed for day-care expenses.
In all, Clinton is proposing 48 new or revised taxes, most aimed at businesses and insurance companies. Sure, families would see a slight decrease in taxes due to child-care credits, but that combination of reductions and increases is troubling.
The president seems to believe there are two sets of Americans - one that stays home and pays the bills and another that goes to work and earns money. They are, of course, one and the same. Just as the folks who pay local, state and federal taxes are one and the same. Tax hikes on businesses hurt people.
Americans should be glad that the year-to-year budget deficits appear to be over. But the biggest challenge ahead will be to keep from increasing government's role now that money is pouring in. Politicians of both major parties are prone to try pleasing their constituents through expenditures.
This year, however, they ought to concentrate on fixing the nation's problems and shrinking the size of government.