CAGW URGES TAX CUTS, SPENDING RESTRAINT | Citizens Against Government Waste


Press Release

For Immediate ReleaseContact: Sean Rushton or Melissa Naudin
February 5, 2001(202) 467-5300



Washington, D.C. - Citizens Against Government Waste (CAGW), America’s largest taxpayer advocacy group, today came out in favor of President George W. Bush’s modest $1.6 trillion tax cut over 10 years and called for simultaneous spending reductions.

“Lower taxes will increase the incentives to work, save, and invest, increasing economic growth and rewarding productive behavior,” CAGW President Tom Schatz said.  “In fact, with new projections showing larger-than-expected budget surpluses, the tax cut could be increased by as much as $600 billion, along with greater debt reduction.” 

“Aside from the salutary economic effects of a tax cut and the personal benefits, including marriage penalty and estate tax relief, cutting off hundreds of billions of dollars before they flow into Washington will reduce both the ability and temptation to overspend the taxpayers’ money,” Schatz added.  “Recent budget surpluses have led to accelerated federal spending.  We must close the spigot before more of our tax dollars are frittered away in waste and pork.  The Bush proposal is a good first step toward making the IRS Code itself fairer, simpler, and flatter.”

As an example of the most recent abuse of tax dollars in the nation’s capital, the Bush administration has identified more than 6,000 specific add-ons to the fiscal 2001 spending bills.  That is in line with the record pork levels that CAGW has uncovered so far in its annual examination of appropriations, the Congressional Pig Book, scheduled for release in early March.  “The administration has told Congress it will reduce the spending levels for fiscal 2002 by the amount of add-ons it found in the current year’s appropriations bills, which is a strong first step toward spending restraint,” Schatz said.

On a related note, today CAGW reacted to comments made by Senator Robert Byrd (D-W.Va.) regarding “fiscal restraint” – in other words, against tax cuts.  Sen. Byrd, upon joining the Senate Budget Committee, noted that he wanted to take an active role in dividing up the $5.6 trillion surplus.

“Senator Byrd preaching about fiscal restraint is like former-President Clinton arguing for chastity,” Schatz added.  “In fact, Byrd claims the levels of appropriations are ‘too low.’  He wants to increase the cap on spending bills, which would reduce the amount available for tax cuts.  Byrd’s unbridled desire to spend as much of the surplus as possible perfectly sums up the argument for larger tax cuts.”

CAGW is a nonpartisan, nonprofit organization with over a million members and supporters, dedicated to eliminating waste, fraud, and abuse in government.



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