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CNN Live At Daybreak

Only One Third of Americans Want to Postpone or Cancel Tax Breaks

Aired January 17, 2002 - 06:40   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CAROL COSTELLO, CNN ANCHOR: While the president works to get the economy running on all cylinders again, one big debate is over taxes. CNN Senior Political Analyst Bill Schneider takes a look at what the polls and the politicians are saying.

(BEGIN VIDEOTAPE)

WILLIAM SCHNEIDER, CNN SR. POLITICAL ANALYST (voice-over): Here's some good news for Democrats. Ask people to choose between tax cuts and balancing the budget, they say, "Balance the budget," by nearly two to one. Score one for the Democrat's new religion of fiscal responsibility. But when asked who they trust to make the tough choices about taxes and spending, people prefer President Bush's approach over the Democrats.

President Bush's priority is pretty clear.

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: I've made up my mind. The tax relief plan we passed, which you're now beginning to feel the effects of, is going to be permanent.

SCHNEIDER: What about balancing the budget? "That's hard to do," the president says, "when we're fighting a war." "Nonsense," say leading Democrats.

SEN. TOM DASCHLE (D-SD), SENATE MAJORITY LEADER: September 11th and the war aren't the only reasons the surplus is nearly gone. They're not even the biggest reason. The biggest reason is the tax cut.

SCHNEIDER: "Nonsense," says the American public. The public says the main reason for the deficit is government overspending, followed by the war on terrorism, followed by the recession, followed by the tax cuts. Fewer than one in ten Americans believe it'' tax cuts that have thrown the budget out of whack.

The public likes the tax cuts. By two to one, they say they were a good thing, not a bad thing for the country. Senator Kennedy wants to slow them down.

SEN. EDWARD KENNEDY (D), MASSACHUSETTS: My proposal would put on hold approximately $350 billion in future tax breaks for the wealthiest Americans during the next 10 years. SCHNEIDER: "Nonsense," says the American public. Eleven percent want to cancel the tax cuts completely. And another 25 percent are willing to postpone them. Together, that's just over a third. A solid majority wants to keep the tax cuts as currently planned, or even speed them up.

It sounds like tax cuts are a high priority issue. Actually, no. What are people's top concerns right now? Terrorism, education and the economy, not taxes or social programs or the deficit. The debate in Washington about tax cuts versus the deficit and social programs doesn't mean much to the American people. What do people really want? A good economy.

(on camera): Democrats are asking people to make a choice between tax cuts and other things. Republicans are saying you don't have to make that choice. Guess which position people find more appealing? Bill Schneider, CNN, Washington.

(END VIDEOTAPE)

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