Wilkes-barre Rec Dept Holds Tennis Camp

Aldo Russo 
Aug. 9, 1996 
Aldo Russo, 88, Of New Hancock Street, Wilkes-barre, And Formerly Of Scott 
Street, Parsons, Wilkes-barre, Died Friday At Home.

Sunday, August 11, 1996 &nbsp;&nbsp;&nbsp;&nbsp;Page: 





Dole's desperate tax-cut promise is Reaganomics at its worst &nbsp;&nbsp;&nbsp; 
 Some say it was an act of desperation. Others say it was nothing more than
a traditional political ploy. Either way, the scenario was obvious. Bob Dole's
pre-convention campaign for president was not only playing poorly in the
hinterland, but some of his supporters admitted they were losing faith, hope, &nbsp;&nbsp;&nbsp; and even charitySo it was not surprising, having had most of his planned
agenda preempted by the president, that Dole would resort to the taditional
GOP extravaganza that always has brought out voters in the past -- a hefty tax
cut for everybody, supported by a forecast of a blinding rosy growth in the
national economy. &nbsp;&nbsp;&nbsp; 
 Why, it was "Happy Days Are Here Again" all over -- only this time sung to
the tune introduced by Ronald Reagan: "Supply Side Economics," better known as
Reaganomics. Simply put, it contends that whopping tax cuts accompanied by
cuts in spending would result in such prosperity that just the increased
revenue from the lowered tax rates would wipe out the deficits, balance the
budget, and produce a healthy surplus. Some say it was the Keynesian theory
taken to extremes. &nbsp;&nbsp;&nbsp; 
 Of course, the record shows there were some glitches not only in how the
theory was applied, but in the changing dynamics of the economy itself. While
federal spending on social programs was cut an average of 30 percent during
the Reagan years, spending on defense went wild. &nbsp;&nbsp;&nbsp; 
 Moreover, the Reagan era was strained by a titanic effort -- carried out
mostly by the Federal Reserve Board with virtually no support from either the
President or the Congress -- to bring the runaway inflation of the late 70s
and early 80s under control. &nbsp;&nbsp;&nbsp; 
 The final result demonstrated beyond doubt the foolishness of trying to use
a simplistic economic theory to explain, let alone control, an economy as
huge, complex, and seemingly capricious as this nation's. If nothing else, it
ignored one of the fundamental precepts of the Keynesian theory -- that what
is spent in times of national distress must be repaid in times of prosperity. &nbsp;&nbsp;&nbsp; 
 In the end, it converted a national debt of something less than $900
billion into a debt of more than $4 trillion. &nbsp;&nbsp;&nbsp; 
 The tax increases of the Clinton administration and its resistance to
politically inspired pleas for tax cuts, coupled with some judicious cuts in
spending, have brought the annual deficit to its lowest point this decade. &nbsp;&nbsp;&nbsp; 
 Yet, Mr. Dole proposes a new economic plan that would throw all of this
overboard and return to the extravagances of the Reagan years with a
vengeance. Yes, there would be a modest tax cut for everybody -- racheting up
by 5 percent per year for three years. And like all flat taxes, it would
reward the wealthy far more than the average taxpayer. &nbsp;&nbsp;&nbsp; 
 More important, there would be that fundamental Republican giveaway: a 50
percent reduction in the capital gains tax which, again, would benefit only
those who are investors -- the affluent. The series of other tax breaks for
selected groups, in the aggregate, would within six years cut the current
federal budget by one-third. &nbsp;&nbsp;&nbsp; 
 The justification given is that the cash released to private hands would
all be invested in job-producing enterprises. Full employment, it is
suggested, would be just around he corner. &nbsp;&nbsp;&nbsp; 
 The myth here is that there is a shortage of investment capital. The truth
is, judging only by the antics of the stock market and commodity markets, that
the country is awash in cash. There is more cash than there are places to
invest the money. One consequence is a stock market that some observers
believe is oversold, and most have reason to believe is too volatile to be
healthy. &nbsp;&nbsp;&nbsp; 
 But there is another fatal flaw in the Dole plan. What more would be cut
from the federal structure and its services to pay for the estimated
half-trillion dollar cost of the Dole tax cut? Where would the cuts be made?
Who would suffer? &nbsp;&nbsp;&nbsp; 
 The fact is there is no plan for the required savaging of the federal
budget, at least not one that anyone who hopes to gain from promising a
miracle, could win by revealing its cost. &nbsp;&nbsp;&nbsp; 
 At best the Dole proposal is a pig in a poke, a desperate gamble by a
desperate man. You feel sort of sorry for him. &nbsp;&nbsp;&nbsp; 
 One can want too much to be president. &nbsp;&nbsp;&nbsp; 
 Tom Bigler is professor of communications at Wilkes University and a Times
Leader columnist. His column appears Sunday and Wednesday. &nbsp;&nbsp;&nbsp;

Dole's Desperate Tax-cut Promise Is Reaganomics At Its Worst 
Some Say It Was An Act Of Desperation. Others Say It Was Nothing More Than A 
Traditional Political Ploy. Either Way, The Scenario Was Obvious. Bob Dole's 
Pre-convention Campaign For President Was Not Only Playing Poorly In The 
Hinterland, But Some Of His Supporters Admitted They Were Losing Faith, Hope, 
And Even Charity.