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Selling the Plans

Aired January 07, 2003 - 13:40   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.


LOU DOBBS, CNN ANCHOR: As we have reported, the Democrats have a plan of their own to stimulate this economy. The Democrats call their approach front-loaded and fast acting. My colleague Judy Woodruff is on Capitol Hill, where the 108th Congress is about to get to work -- Judy.
JUDY WOODRUFF, CNN ANCHOR: That's right, Lou.

They are about to get to work. They're getting sworn in today. As we were saying earlier, they've all been, I'm sure, listening closely to what the president had to say. They have in the House put out their own plan.

But the person we want to talk to is a Democrat who announced just a few days ago he's forming an exploratory committee, wants to look at seeking the Democratic nomination himself. He is North Carolina Democratic Senator John Edwards.

Senator Edwards, I think you heard much of what the president had to say. He said his plan is going to get the economy going at a time when it desperately needs a boost. Is he right about that?

SEN. JOHN EDWARDS (D), NORTH CAROLINA: No, he's not, Judy. If it looks like a tax cut for the rich, if it walks like a tax cut for the rich, it is in fact a tax cut for the rich.

And this proposal that the president is making does a number of things wrong. First, as some of the commentators were just saying, it's not stimulative. Most of these -- most of the cost of this plan is off in the future. It is not in this year. It's not going to do the things that need to be done this year. Second, it's an enormous budget buster. We're already in deficit spending. The president has presented no plan to get us back to a balanced budget, back to surpluses, and this is going to deepen our hold on deficit spending.

So there are a number of things wrong with this. It's a budget buster. It's loaded up, the benefits are loaded up for the richest Americans, instead of putting help in the hands of people who need it now, and it's not fiscally responsible.

WOODRUFF: But, senator, you know, you say it's tilted to the rich and yet the White House is saying, for a family earning just $39,000 a year, they are going to get a tax cut of over $1,000 annually. If you look at the marriage penalty, which they are trying to do away with, if you are looking at the help they are giving to the unemployed, they say they are paying attention to middle and lower income Americans. EDWARDS: But that's just the glaze on this whole plan, Judy. What they are doing is they put ornaments on it to make it look like the plan is focused on regular people, when it is not. It's true that helping people with unemployment benefits is very good. It's money into the economy. Those people need help. That's the right thing to do.

It's also true that tax cuts for the middle class are a good thing, because that money will, in fact, go back into the economy.

But what the president is not talking about is that he's accelerating tax cuts for the richest 1 percent of Americans, permanently. We're going to carry that burden forever. He's talking about getting rid of the tax on dividends. Well, that -- 42 percent of that goes to the richest 1 percent of Americans and only 10 percent of it has an effect this year; 90 percent of it is off in the future. This plan makes no sense if what the goal is, is to stimulate the economy now and do it in a way that's fiscally responsible, so that we send the right signals to Wall Street and the right signals to the American people.

WOODRUFF: But, Senator, you heard the president say, I'm sure, that this eliminating the double taxation on dividends is going to be an enormous boost to senior citizens, many of whom count on that dividend income as a steady source of income -- something they can count on in the weeks, and months and years ahead. Why isn't that a good idea?

EDWARDS: Well, first of all, a huge percentage of Americans, Judy, have their stock investments in a pension plan, in a 401(k) or pension plan; they're already not being taxed. We're talking only about the people who actually own stock themselves in the market.

And what we're proposing, I'll tell you what I'm specifically proposing, is that we give a $500 energy tax credit to every American family for what we know is going to happen this winter with increased energy cost. That money goes directly to seniors, goes directly into their pockets.

If what we're trying to do is help regular people, if we're trying give help to seniors, we ought to do it directly. We ought to not do it in a way where the majority of the benefits end up in the hands of the wealthiest Americans, and that money will never get directly into the economy.

So the bottom line is, doesn't stimulate, too loaded up for the richest Americans, and it's a budget buster over the long term.

WOODRUFF: All right, Senator John Edwards of North Carolina, who, as we say, has declared his interest in seeking the presidency.

Senator Edwards, thank you very much.

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com







Aired January 7, 2003 - 13:40   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
LOU DOBBS, CNN ANCHOR: As we have reported, the Democrats have a plan of their own to stimulate this economy. The Democrats call their approach front-loaded and fast acting. My colleague Judy Woodruff is on Capitol Hill, where the 108th Congress is about to get to work -- Judy.
JUDY WOODRUFF, CNN ANCHOR: That's right, Lou.

They are about to get to work. They're getting sworn in today. As we were saying earlier, they've all been, I'm sure, listening closely to what the president had to say. They have in the House put out their own plan.

But the person we want to talk to is a Democrat who announced just a few days ago he's forming an exploratory committee, wants to look at seeking the Democratic nomination himself. He is North Carolina Democratic Senator John Edwards.

Senator Edwards, I think you heard much of what the president had to say. He said his plan is going to get the economy going at a time when it desperately needs a boost. Is he right about that?

SEN. JOHN EDWARDS (D), NORTH CAROLINA: No, he's not, Judy. If it looks like a tax cut for the rich, if it walks like a tax cut for the rich, it is in fact a tax cut for the rich.

And this proposal that the president is making does a number of things wrong. First, as some of the commentators were just saying, it's not stimulative. Most of these -- most of the cost of this plan is off in the future. It is not in this year. It's not going to do the things that need to be done this year. Second, it's an enormous budget buster. We're already in deficit spending. The president has presented no plan to get us back to a balanced budget, back to surpluses, and this is going to deepen our hold on deficit spending.

So there are a number of things wrong with this. It's a budget buster. It's loaded up, the benefits are loaded up for the richest Americans, instead of putting help in the hands of people who need it now, and it's not fiscally responsible.

WOODRUFF: But, senator, you know, you say it's tilted to the rich and yet the White House is saying, for a family earning just $39,000 a year, they are going to get a tax cut of over $1,000 annually. If you look at the marriage penalty, which they are trying to do away with, if you are looking at the help they are giving to the unemployed, they say they are paying attention to middle and lower income Americans. EDWARDS: But that's just the glaze on this whole plan, Judy. What they are doing is they put ornaments on it to make it look like the plan is focused on regular people, when it is not. It's true that helping people with unemployment benefits is very good. It's money into the economy. Those people need help. That's the right thing to do.

It's also true that tax cuts for the middle class are a good thing, because that money will, in fact, go back into the economy.

But what the president is not talking about is that he's accelerating tax cuts for the richest 1 percent of Americans, permanently. We're going to carry that burden forever. He's talking about getting rid of the tax on dividends. Well, that -- 42 percent of that goes to the richest 1 percent of Americans and only 10 percent of it has an effect this year; 90 percent of it is off in the future. This plan makes no sense if what the goal is, is to stimulate the economy now and do it in a way that's fiscally responsible, so that we send the right signals to Wall Street and the right signals to the American people.

WOODRUFF: But, Senator, you heard the president say, I'm sure, that this eliminating the double taxation on dividends is going to be an enormous boost to senior citizens, many of whom count on that dividend income as a steady source of income -- something they can count on in the weeks, and months and years ahead. Why isn't that a good idea?

EDWARDS: Well, first of all, a huge percentage of Americans, Judy, have their stock investments in a pension plan, in a 401(k) or pension plan; they're already not being taxed. We're talking only about the people who actually own stock themselves in the market.

And what we're proposing, I'll tell you what I'm specifically proposing, is that we give a $500 energy tax credit to every American family for what we know is going to happen this winter with increased energy cost. That money goes directly to seniors, goes directly into their pockets.

If what we're trying to do is help regular people, if we're trying give help to seniors, we ought to do it directly. We ought to not do it in a way where the majority of the benefits end up in the hands of the wealthiest Americans, and that money will never get directly into the economy.

So the bottom line is, doesn't stimulate, too loaded up for the richest Americans, and it's a budget buster over the long term.

WOODRUFF: All right, Senator John Edwards of North Carolina, who, as we say, has declared his interest in seeking the presidency.

Senator Edwards, thank you very much.

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com