Dems offer a tax cut alternative, but nobody gets it??!!

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"Key House Panel Approves Tax Rate Cut

By Donna Smith

WASHINGTON (Reuters) - The tax-writing House Ways and Means Committee on Thursday approved an across-the-board cut in income tax rates, the centerpiece of President George W. Bush (news - web sites)'s $1.6 trillion tax cut plan.

The committee voted 23-15, along party lines, for a sweeping reduction in tax rates to be phased in over five years, while creating a new lower tax bracket of 12 percent for the first $12,000 of income for married couples and $6,000 for single people and making it retroactive to Jan. 1, 2001.

That rate bracket would be phased down to 11 percent in 2003 and 10 percent in 2006. Reductions for other tax rate brackets would begin in 2002. By 2006, the current five brackets of 39.6, 36, 31, 28 and 15 percent would be lowered to four -- 33, 25, 15, and 10 percent.

The White House praised the committee's action.

``The president is pleased that tax relief is moving forward. We hope Congress will continue taking action on his package,'' spokesman Ari Fleischer told reporters traveling with Bush in Atlanta, one stop on a two-day, five-state trip to build public support for his tax package.

Ways and Means Committee Chairman Bill Thomas said the cuts would give the slowing U.S. economy a shot in the arm and encourage long-term growth as well.

``This plan will put money into the pockets of American consumers in the short term and provide greater rewards to more work and entrepreneurship in the longer term,'' said Thomas, a California Republican.

Thomas also said he expected Democratic votes for the legislation when it goes to the full floor.

``I can't imagine there aren't some Democrats that aren't really anxious to vote for this measure if we can get it on the floor by next week,'' he said.

The bill, which would lower federal revenues by an estimated $958 billion over 10 years, is expected to go to the Republican-controlled House of Representatives for a vote possibly next Thursday and is expected to pass.

Senate Majority Leader Trent Lott, a Mississippi Republican, said he hoped the Senate would be able to pass the tax cut quickly and get it to the president's desk by July. But the legislation faces a much tougher battle in the evenly divided Senate.

Democrats Offer An Alternative

The Ways and Means Committee approved the sweeping rate cuts after rejecting a Democratic alternative the Democrats said would get more money into the hands of lower- and middle-income families faster than Bush's proposal and at about half the cost to federal revenues.

The Democrats' bill would create a 12 percent rate bracket for the first $10,000 of income for a single taxpayer and the first $20,000 of income for married couples. There would be no change in higher tax brackets under the Democratic plan. It also would expand the earned income tax credit for poor working families."

Basically, this means the dem's 'alternative' offers no tax relief to anyone but those making the minimum wage. wooo wooo!!! Where is their 'concern' for the middle-class, seems a little lacking.

-- dems luv taxes (moreinterpretation@ugly.com), March 02, 2001


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