MUNCIE, Ind. – A massive tax cut proposal by the leading Republican presidential candidate is simple political posturing, but could boost America's already fast-growing economy, say a pair of Ball State University educators.

Texas Gov. George W. Bush proposed a $483 billion tax cut package in a seven-point plan to help poor Americans and stimulate the economy at the same time.

Kevin Smith, a history professor, believes Bush's campaign promise appeals to his conservative supporters who think the primary objective of America's tax policy is not a strong economy.

"They think that a tax cut is necessary as a part of an effort to provide more freedom for Americans, including low-income earners," Smith said. "The tax cut would be designed to provide real help to low-income Americans, which appeals to more politically moderate voters.

"Bush is reaching out to voters with 'compassionate' tax cuts," he said. "Campaigning is all about posturing. Governing is about choosing which of those postures to deliver on."

Bush is proposing a reorganization of the tax system. Individuals paying the top rate of 39.6 and 36 percent would have their taxes reduced to 33 percent. Middle-income Americans would see a reduction from the current 31- and 28-percent rates to a single 25-percent rate. At the bottom, individuals would see their rate cut reduced from 15 to 10 percent.

Under Bush's plan, financed by budget surpluses, about six million low- and moderate-income families would no longer pay any taxes.

Cecil Bohanon, an economics professor, points out that reducing the federal tax rates in the 1980s created opportunities for entrepreneurs who generated the longest-running economic expansion in American history.

"The significant reductions in marginal tax rates are undoubtedly the spark plug and sustainer of the current economy," he said. "It is important to remember that in 1980 the top federal marginal tax rate was 70 percent. Can anyone image the high-tech, risk-taking entrepreneurial economy emerging if seven out of 10 of the additional dollars earned had to be forked over to Uncle Sam?"

By Marc Ransford, Communications Manager

(NOTE TO EDITORS: For more information, contact Bohanon at (765) 285-5363 and Smith at (765) 285-8722.)