Iowa Congressman Jim Leach says he’s more inclined to favor tax cuts over spending to spur the economy. But, he says he’d prefer “a little steadier rudder” in which neither comes into play to create huge deficits. Leach, a republican from Iowa City, says the situation in Iraq has to be considered. He says if you’re gonna have a war and expensive aftermath, you can’t have tax cuts. Leach says he’s also concerned that the tax cut would be the most regressive in history.He says the tax cut might clearly make a positive impact on the stock market, but he says the negative is that it would shift the funding of the government to from the upper middle class to the working classes. Leach says that’s why he voted against the House tax cut last week. Leach says the economies of Europe and Asia are seeing reduced growth, and there’s an overproduction of goods in the market that could be bad news for the U.S. economy.He says the economy is on the cusp of either moving forward with a very positive take off, or a very smoldering stagnation and movement backwards. Leach says he’s inclined to think the movement will be on the positive side. He says he’s more optimistic than pessimistic, with the caveat that more terrorism could take the economy in the other way. Leach voted against the House tax cut proposal that passed last week.
