Kennedy praises Bush tax cuts

By CHRIS VETTER

Journal Staff Writer

NEW ULM -- Congressman Mark Kennedy spoke highly of President Bush's tax cut package Wednesday, saying it will put more money back into the sluggish economy.

"I think the tax cut is important to keep the economy moving," Kennedy said during a conference call with reporters in the Second Congressional District. "It's going to let people pay down their credit card bills and work more for themselves, and less for the government."

The House passed Bush's $958 billion tax cut plan March 8 on a 230-198 vote. All 219 Republicans in the House voted for the tax cut. The plan would cut taxes by $1.6 trillion over the next 10 years.

Kennedy, a Republican, acknowledged that the proposal will have a more difficult road in the Senate, which is evenly split between Republicans and Democrats.

"The Senate will be the driving force in deciding what will be our outcome in tax reform and tax relief," he said.

Kennedy joined Bush in Sioux Falls, S.D., last week to promote the tax cuts. Kennedy noted that none of the Senators from North Dakota, South Dakota or Minnesota -- all Democrats -- have stepped forward and endorsed the Bush plan.

"I know the president is committed to this, and I know there is growing support from the people," Kennedy said.

People would benefit from the plan because it offers an across-the-board income tax cut and more relief for families, Kennedy said.

The legislation would gradually reduce and condense the current five income tax rates of 15, 28, 31, 36 and 39.6 percent. Under the Bush plan, those tax rates would be lowered to 10, 15, 25 and 33 percent.

Some legislators in the GOP caucus are pushing for further tax cuts beyond Bush's proposal. Kennedy said he doesn't support those plans.

"I think the president's proposal is an appropriate-sized tax cut," he said. "I'm not signed on the higher levels."

Kennedy also rejected a Democrat proposal that would pay off the national debt further.

"I think we are paying down all the debt that can be paid down," he said.

Kennedy also spoke against a "trigger mechanism" that would tie future tax cuts to annual surpluses. Bush also has opposed the trigger system.

"I read that as (Democrats) saying they don't support tax cuts," Kennedy said. "I'd be very surprised if there is a trigger mechanism in the final passage."

While tax cuts were the focus of the phone interview, Kennedy also spoke in favor of increased federal funding for special education programs, missile defense systems and agriculture.

Gov. Ventura recently said that one reason Minnesota school districts are struggling to pay bills is in part because Congress has not met its promise of paying for 40 percent of special education programs. Kennedy agreed with Ventura's assessment.

"If we were funding that, it would take a lot of pressure off local school boards," he said.

Kennedy said he is supportive of a missile defense plan, noting recent problems in Pakistan, Russia and North Korea.

"I think we are kidding ourselves if we think there aren't rogue nations out there," he said. "A (terrorist) group's chance of launching a missile at us is increasing every day."

Kennedy argued that the system, which focuses on defense and not attacking other nations, would not escalate an arms race.

In farming issues, Kennedy said he supports opening new markets and increasing the use of biodiesel. He said farmers need a stronger support system.

"Our focus is to come up with a real safety net that farmers can count on," he said.

Kennedy ended the discussion by throwing his support behind the Dakota, Minnesota & Eastern expansion project. A federal board is currently reviewing the plans that would allow DM&E to upgrade and replace its tracks, while adding new track in Wyoming.

"I hear a lot of support for it from farmers," Kennedy said. "I'm generally in favor of increasing our transportation options. I think it will have a positive economic development impact for Southern Minnesota."