Mr. Bush Lights a Fire

The President's tax cut will surely stoke the economy in the short run. But will it suffocate long-term growth?

Cutting taxes is nothing novel for George W. Bush, a politician who has made the quest for ever-lower rates a reflex action. Still, the $350 billion growth package he just muscled through Congress could be the most important of his Presidency. With one eye on the economy and another on reelection, he's betting faster rate cuts and juicy investment incentives will boost the stock market, prompt businesses to start spending, and shake off the nation's economic malaise by November, 2004. "This legislation is adding fuel to an economic recovery," Bush declared as he signed the tax bill on May 28.

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