Recession worries dominated Montanans' reactions to President
Bush's final State of the Union address Monday night.
Sen. Max Baucus agreed on the importance of quickly passing and
signing into law an economic stimulus plan that will help boost the
nation's faltering economy although he preferred his own plan to
the president's.
Earlier Monday, Baucus
unveiled his economic stimulus proposal that would provide a flat
$500 rebate to each American reporting at least $3,000 of income on
their 2007 tax return, and families would receive an additional $300
per child under age 17. Baucus is chairman of the powerful
Senate Finance Committee, which has jurisdiction over all taxes and
revenue.
But Bush's proposal to offer tax rebates struck Larry Swanson, an
economist who's director of the Center for the Rocky Mountain West,
as a "fairy-tale solution."
"For the past seven years, we've had deficit spending and tax
cuts as a basic part of our policy," Swanson said.
"Now with a 50 percent chance of recession over the next year, we
propose to do more spending cuts and more deficit spending," he
said. "But that's how we got where we are."
With a national debt of $9 trillion up from about $5.7 trillion
when President Bush first took office the nation is now spending
about $400 billion a year paying the interest on the money we've
borrowed, he said. That compares to spending just $60 billion on
education.
And now Bush is proposing to add another $150 billion in debt to
stimulate the economy, he said.
"And out of that $9 trillion national debt, approximately $2
trillion of it is owed to the Social Security Trust Fund," said
Swanson. "With a projection that the number of people over 65 years
old will double in the next 20 years, this is insanity in my mind."
Erik Iverson, chairman of the Montana Republican Party, was
impressed with the president's emphasis on clean energy, clean coal,
carbon capture and renewable energy programs.
"Having the largest recoverable coal reserves in the country, but
being only number six in coal production means that we're going to
have a lot of work to do if we're going to reach our potential," he
said.
"The president's emphasis on clean energy programs was very
encouraging because that's very important for Montana," said
Iverson. "We have to find a way to advance those technologies."
But Iverson thought agriculture was virtually forgotten in the
State of the Union address.
"A new farm bill is important to Montana,said Iverson. "I would
have liked to have seen greater emphasis on a new farm bill because
we have to have one."
Dennis McDonald, chairman of the state's Democratic Party, was
also concerned about the lack of emphasis on agriculture.
"And I don't believe the tax rebates will do much to solve our
economic problems because we live in a time of spiraling deficits,
spiraling foreign trade deficits, and historically high fuel
prices," said McDonald.
"This plan really does nothing but increase the national debt,"
he said. "It does nothing to expand business, create jobs or
encourage our citizens to save or invest.
"And it does nothing to rebuild our country's infrastructure,
promote education or rebuild the nation's confidence," McDonald
said.
He did praise the president's call for renewed charitable giving,
but said the highlight of his evening was watching Montana's two
Democratic senators enter the chamber for the address.
Sen. Jon Tester praised Bush's increasing support of veterans'
issues.
"We've done a lot over the past year to move veterans' issues
forward to make sure they get the health care they were promised,"
he said. "After not hearing the word 'veteran' once during last
year's State of the Union, it's good to see President Bush finally
realizes that the status quo for our veterans is unacceptable. It's
time for him to pay more than lip service.
"Our troops have made military progress in Iraq because they're
the best in the world," said Tester. "It's too bad the president
hasn't made it a priority to make diplomatic progress there. Until
he does, Iraq will be using our presence as a crutchat a cost of $3
billion every week."
Rep. Denny Rehberg, R-Mont., called for a cooperative approach:
"There are a lot of important issues we must address. From passing
an economic stimulus package to completing critical unfinished
business like the Farm Bill and SCHIP ((the State Children's Health
Insurance Program), there's plenty of work to get done. The American
people want results. It's time for Congress and the president to
work together in a bipartisan manner to reach some consensus and
find solutions."
Reach Tribune Projects Editor Eric Newhouse at 791-1485,
800-438-6600 or enewhouse@greatfallstribune.com