Cato Daily Dispatch for October 8, 2001
U.S. Prepared For New Attacks?Bush Seeks Tax Cuts
No Third Term For Giuliani
U.S. Prepared For New Attacks?
The United States yesterday stepped up security measures at home and abroad, and intelligence agencies went on high alert against the threat of renewed terrorist attacks as President Bush launched airstrikes against targets in Afghanistan, according to The Washington Post.
With the country already in the midst of the largest mobilization in history to protect against terrorism, the FBI requested that all law enforcement agencies operate at "the highest level of vigilance" and that they assess whether additional local security measures were warranted "in light of the military operations and the current threat level."
In a Cato study written last year, Eric Taylor wrote that the lack of public awareness about nuclear, biological or chemical attacks undermines national plans for dealing with such terrorism. Without education, the government "will have two foes to combat during an attack: the [nuclear, biological or chemical] agent and rampant civil panic," he says. Read more in "Are We Prepared for Terrorism Using Weapons of Mass Destruction?"
Bush Seeks Tax Cuts
President Bush, seeking to spur the American economy in the wake of the September 11 terrorist attacks, called on Congress Friday to pass a $60-billion tax relief package, according to Fox News.
"In order to stimulate the economy, Congress doesn't need to spend any more money," Bush said. "What they need to do is cut taxes."
Specifically, Bush called on Congress to accelerate the marginal tax rate reductions that were included in the 10-year, $1.35-trillion tax package passed last spring and scheduled to take effect starting next year.
Bush also recommended new tax breaks for low- and moderate-income workers whose primary tax burden now is Social Security payroll taxes. This has been a key demand of Democrats.
For businesses, the president asked lawmakers to approve faster tax write-offs for new purchases of business equipment. He also called for eliminating the alternative minimum tax on corporations.
Some analysts are suggesting that payroll tax reductions would shore up consumer confidence. But the slowdown has been driven by a huge drop in business investment, while consumers have continued a moderate spending pace until recently. Therefore, it makes the most sense to aim a tax cut directly at the core problem, which is slumping investment in machinery and equipment, says director of fiscal policy studies Chris Edwards in "Business Tax Cuts Crucial in a Slowdown."
No Third Term For Giuliani
The Democratic leader of the state Assembly said Sunday that his chamber would not consider any legislation to extend the term of New York Mayor Rudolph Giuliani, according to the Associated Press.
"It's not going to happen," Assembly Speaker Sheldon Silver said.
In the wake of the Sept. 11 terrorist attacks on the World Trade Center, Giuliani said he wanted at least a three-month extension of his term to help ease the transition for the city's next mayor.
In "Let the Clock Run Out on Rudy," Patrick Basham explains that term limits didn't arrive in the Big Apple on a whim.
"In a November 1993 citywide referendum, 60 percent of New York City voters supported limiting senior municipal politicians to two four-year terms in office," he wrote. "That vote was subsequently the subject of a failed court challenge by the City Council. In November 1996, the City Council asked New Yorkers to delay the implementation of term limits and to lengthen the allowable term in office to 12 years. New York voters said, 'No.' A recent opinion poll found two-thirds of New Yorkers favor term limits."