WASHINGTON (AP) -- The economy's relentless growth means federal surpluses will be far larger than estimated, leaving plenty of room for George W. Bush's proposed tax cut, aides to the presidential contender said Tuesday.
Bush's new estimates came amid cries from supporters of his Democratic rival, Vice President Al Gore, that the Republican's plan would be so big it would force deep spending cuts and a return to budget deficits. Bush's plan "doesn't add up," a Gore adviser asserted.Using new economic data, the Texas governor's campaign now says that, excluding Social Security, there will be a federal surplus of $647 billion from 2002 through 2006. That is $61 billion more than his aides had previously projected.
The campaign also estimated that from 2001 through 2010 the surplus would total $1.83 trillion. Bush aides had not previously offered a 10-year projection, but their new figure more than doubles the $838 billion estimate the nonpartisan Congressional Budget Office made in January.
With the extra money, the budget can afford the tax cuts and spending boosts for health care, schools, defense and other programs that Bush has proposed, economic adviser Larry Lindsey said.
"The governor's proposal is well within the balanced budget constraint," said Lindsey, a former Federal Reserve governor.
In addition, Bush is now using a $460 billion price tag for the 5-year cost of his proposed tax cut. He had previously said its cost was $483 billion.
The new estimate came from Congress' Joint Committee on Taxation, which is controlled by Republicans.