Taxes
Governor Bush believes that roughly one-quarter of the surplus should be returned to the people who earned it through broad tax cuts – otherwise, Washington will spend it. His plan will promote economic growth and increase access to the middle class by cutting high marginal rates. It will also double the child credit, eliminate the death tax, reduce the marriage penalty, and expand Education Savings Accounts and charitable deductions. The largest percentage cuts will go to the lowest income earners. As a result, 6 million families will no longer pay federal income tax......
Increase Access to the Middle Class: Under current tax law, low-income workers often pay the highest marginal rates. For example, a single waitress supporting two children on an income of $22,000 faces a higher marginal tax rate than a lawyer making $220,000. As a result, the benefit to this waitress of taking an extra training course or working an extra shift is cut in half by the government. Governor Bush believes that we need to take down this tollbooth on the road to the middle class. Under his plan, this waitress will pay no income tax at all.....
Governor Bush’s Tax Cut Proposal
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1. Increase access to the middle class for hard working families:
Cut the current 15 percent tax bracket to 10 percent for the first $6,000 of taxable income for singles, the first $10,000 for single parents, and the first $12,000 for married couples.
Double the child tax credit to $1,000.
2. Treat all middle class families more fairly:
Cut the maximum tax rate for the middle class to 25 percent (versus the current maximum rates of 28 and 31 percent).
Greatly reduce the marriage penalty by restoring the 10 percent deduction for two earner families, allowing them to deduct up to an additional $3,000.....
Under Governor Bush’s tax plan, the largest percentage reductions will go to the lowest-income earners. As a result:
Six million low- and moderate-income families will be removed from the income tax rolls entirely. That is one out of every five families with children.
The marginal income tax rate on millions of low-income families will fall by over 40 percent......
Tax Relief for Families of Four
A family of four making $35,000 will receive a $1,500 tax cut, a 100 percent reduction.
A family of four making $50,000 will receive a $2,000 tax cut, a 50 percent reduction.
A family of four making $75,000 will receive a $2,500 tax cut, a 25 percent reduction.
Tax Relief for Single Parents
A single mother with one child making $22,000 will receive a $1,000 tax cut, a 100 percent reduction.
A single mother with two children making $32,000 will receive a $1,500 tax cut, a 95 percent reduction.
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