CSP to The President: Cut Taxes — For a Stronger Defense’

(Washington, D.C.): Last week, Center for Security Policy President Frank J. Gaffney, Jr. sent a letter to President Bush (see attached) expressing his strong support — echoed by many in the national security community — for the President’s plan to reduce the tax burden on Americans.

In his letter, Gaffney details the dual benefit to America and Americans of a tax reduction — a necessary stimulus to the civilian economy and a concomitant boost for the Nation’s defense. After all, as Gaffney writes:

To the extent that your program of tax simplification and reductions translates into as you have put it a refund’ for every American who pays taxes, the effect will assuredly be to contribute to long-term economic growth. Such growth will, in turn, add to future federal revenues and thereby facilitate the very substantial recapitalization of the armed forces.

To be sure, the critically needed recapitalization will not come cheaply. According to the very conservative estimate of the Congressional Budget Office, the rebuilding of the military will cost, at a minimum, some $50 billion per year over the next five years. What is more, when Secretary Rumsfeld’s team completes its top-down review of the strategy and requirements of the Department of Defense, the final figure could well increase to $100 billion per year over the same five year period.

As Gaffney notes, however, even at the high-end this necessary recapitalization of the Nation’s defense capability will represent a mere four percent of the gross domestic product – – four cents on the American national dollar for national security.

To make this significant but essential investment possible, writes Gaffney, the Nation’s robust economy must be maintained and encouraged. History has proven time and again that a reduction in the overall rate of taxation actually produces more revenue to the federal government, due to the resultant increase in economic activity. It is highly encouraging, therefore, to see that President Bush — in pushing for his tax reduction agenda despite nay-saying by the usual suspects — grasps and is determined to stand by the need for tax cuts, not only to provide just relief to every American taxpayer, but to restore a strong U.S. economy, stable growth and the wherewithal necessary to rebuild America’s national defense capability.