TAX CUT STILL IS CORNERSTONE OF BUSH PLAN

A fundamental building block in the foundation of George W. Bush's presidency is his pledge to cut taxes by $1.3 trillion over the next 10 years.

Even as he organizes his administration, which takes over the executive branch this weekend, Bush has had quite a taste of economic policy. The president-elect has boldly kept the nation's focus on the tax cut. There are detractors who believed Bush might tone down the tax issue after winning the presidency, mainly because the country is so split among voters as well as among senators and representatives in Congress.

But, to his credit, Bush hasn't wavered. He sees even more compelling reasons for the tax cut now that he has had an opportunity to gauge the economy in the waning weeks of the Clinton administration. He has told the American people that they may face a downturn in the economy, perhaps even a recession. He hasn't glossed over the plain facts, and he rightly sees a tax cut as a much needed stimulus.

Other detractors thought Bush might back away from the full force of a $1.3 trillion tax cut after Alan Greenspan led the Federal Reserve's approval of a half-point reduction in the key short-term interest rate. Again, Bush rightly sees interest-rate reductions and tax cuts working in tandem to maintain the nation's aggressive economy.

Perhaps the biggest disappointment of late has been the fact that the latest Fed rate cut was made without informing the president-elect in advance, much less consulting with the new administration. While no administration should dictate policy to the Federal Reserve, certainly any president and his economic advisers should be made aware of major shifts in the dynamics that so clearly affect the nation's economy.

Those who would have Bush back away from his tax-cut pledge need to recall the unkept White House promises of the last two administrations, including the no-new-taxes pledge of the new president's father. If Americans are ever to have confidence in the presidency again, it will take someone like President-elect Bush to not only stick to his guns on the tax cut, but perhaps to improve upon it.

Bush, who takes the oath of office on Saturday, in recent days had been able to emphasize his dedication to a big tax cut by suggesting the $1.3 trillion over 10 years might not be big enough.

That's a gutsy pronouncement, but it's one that whose wisdom will only be borne out if the new administration follows through until it becomes a reality.