DURBIN PROPOSES IMMEDIATE TAX CUT,
LOWER TAX BRACKET
WASHINGTON - 03.27.01 | With President George W. Bush pitching his tax plan in Michigan today, U.S. Sen. Dick Durbin (D-IL) joined Democratic colleagues on Capitol Hill to propose a tax cut plan that would put money in working families' pockets immediately and create a lower tax rate permanently for anyone currently paying income tax.
Any American who paid income or payroll taxes in 2000 would receive $300 for an individual, $600 for a married couple and $450 for a head of household. Additionally, the proposal would cut the effective income tax rate from 15 percent to 10 percent on the first $6,000 of taxable income for individuals, $12,000 for married couples and $10,000 for heads of household. The lower rate would take place and be reflected in withholding rates on July 1 of this year.
Durbin contrasted the Senate Democrats' proposal with the Bush plan, which gives 43 percent of the tax benefits to the wealthiest one percent of Americans and is based on shaky budget forecasts that don't take the weakening economy into account. In addition, less than $6 billion of Bush's tax cut would take effect in 2001, while the Democrat's plan would give more than $60 billion of tax relief in 2001
"America's families know that our economy is struggling right now," Durbin said. "We need to focus on help for all families not just for the privileged few - and we need to provide that help immediately."
Durbin, the Assistant Democratic Floor Leader, and his colleagues also urged Congress to act on their $60 billion short-term economic stimulus package now instead of tying it up by linking it to President George W. Bush's 10-year, $2.6 trillion proposal. Noting that the estimated budget surplus this year is $96 billion after setting aside the Social Security and Mediacre surpluses, the Illinois senator said now - not later when budget surpluses are uncertain - is the time to give working Americans a return on their investment in the nation's prosperity.
"Our plan would provide an immediate $60 billion jump start to the economy while continuing to pay down the debt," Durbin said. "Our tax cut is more responsible and would not raid Social Security and Medicare if the economy were not as strong as projected."
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