What a difference an administration makes. President George W. Bush made good on his campaign promises by offering broad-based tax relief. The Bush plan will straighten out inequalities in the current system while boosting a slowing economy. For students with a part time job or entering the workforce, this policy will make a difference in your lives and your wallet.
Everyone agrees that the current tax code is unfair. The economy students are about to enter is slowing. Meanwhile, federal taxes are the highest ever during peacetime. The average employee must work more than four months of the year just to pay taxes. Americans spend more on taxes than on food, clothing and housing combined. Obviously the economy needs a pick-up; the only answer is to give people more of what they earned.
For people geting married, the Bush plan would reduce the “marriage penalty” so they do not pay higher taxes than their single friends. For singles, the current 15 percent tax rate would be cut to 10 percent for the first $6,000 of taxable income. And for people with children, Bush offers a $1,000 per child tax credit.
Do not worry about the “death tax” anymore. This tax on personal wealth at death would be abolished so individuals may pass on their estates without Uncle Sam taking half in taxes. Both parties agree this tax should be repealed.
Credit card debt alone totals over $600 billion, more than $2,000 for every man, woman and child in the country. This debt will eventually restrict consumer spending. If spending slows, the economy will slow, too. Tax relief would give all individuals the ability to pay down the debt and help the economy.
Do not be fooled by Democratic claims that the president’s plan is a tax cut for the rich. In reality, the largest percentage cuts go to those making less: the average American family earning $50,000 would receive at least a $1,600 cut, a 50 percent reduction. And a family of four making $35,000 would get a 100 percent tax cut. One in five taxpaying families with children would no longer pay any taxes. Low-income Americans are the biggest winners.
Americans can easily afford this tax cut. New budget estimates show America will run a $5.6 trillion surplus. The President’s tax plan uses roughly one-fourth of the surplus for tax relief, protects Social Security and provides funding for education, Medicare and defense. John F. Kennedy and Ronald Reagan used cuts to boost the economy. Bush will do the same to secure our economy.
-The writer is vice chair of the GW College Republicans.