[Hpn] Bush Tax Cut Plan "Robin Hood in reverse": Sen. Wellstone press release (fwd) release (fwd)

Tom Boland wgcp@earthlink.net
Mon, 12 Feb 2001 19:30:13 -0800 (PST)

FWD http://www.commondreams.org/news2001/0208-03.htm FOR IMMEDIATE RELEASE FEBRUARY 8, 2001 2:07 PM CONTACT: Senator Paul Wellstone Jim Farrell or Allison Dobson 202/224-8440 WELLSTONE BLASTS BUSH TAX CUT PLAN: MILLIONS OF WORKING FAMILIES & CHILDREN GET NO BENEFIT "This plan is like Robin Hood in reverse" - Paul Wellstone WASHINGTON - February 9 - Citing the most recent devastating analysis of President Bush's Tax Cut proposal, U.S. Senator Paul Wellstone (D-MN) today had harsh words for the scheme which would leave out an estimated 12 million low- and moderate-income families with 24 million children, and more than half of all black and Hispanic children, from any of the benefits. Wellstone strongly criticized the Bush plan for providing no benefit to nearly one in every three U.S. families and their kids -- working families who most need the tax relief. "In his inaugural speech President talked about 'leaving no child behind'. And the President, in his education proposal, also spoke about 'leaving no child behind'. I think that is a wonderful value and a wonderful vision for our country. But where in this budget, where in the arithmetic of the tax cuts and the surplus, will there be the investment to make sure that no child is left behind? I am sick and tired of symbolic politics when it comes children's lives. These tax cuts the President has proposed go overwhelmingly to the wealthy, but leave working families and children out in the cold. We will hold the President and this administration accountable on the words, 'leave no child behind'," Wellstone said. Yesterday, the Center on Budget and Policy Priorities <http://www.cbpp.org> released an analysis of the Bush Tax Cut plan showing: An estimated 12.2 million low-and moderate-income families with children - 31.5% of all families - would not receive any tax cut from the Bush proposal. Approximately 24.1 million children - 33.5% of all children - live in the excluded families. More than half of black and Hispanic children live in families that would receive nothing from the tax cut - 55% of African-American children and 56% of Hispanic children. The 12 million families who get nothing from the Bush tax cut do not benefit because they have no income tax liability before the Earned Income Tax is computed. These families still pay substantial amounts in other taxes, such as the payroll tax and excise taxes. For example, in 2001, a two-parent family of four does not begin to owe income tax - and thus does not begin to benefit from the Bush plan - until its income reaches $25,870, some 44% above the poverty line of $17,950. The Bush proposal to double the child tax credit would be of little or no help to many low-and moderate-income families. Indeed, because the proposal would provide benefits for the first time to families with incomes in the $110,000 to $200,000 range, the proposed child credit expansion would confer a larger share of its benefits on upper-income families than on low- and middle-income families. The top 20% of families would get 46% of the tax-cut benefits from this proposal, a larger share than any fifth of the population would receive. Most working families pay taxes other than federal income taxes, often in significant amounts. In 1999, three quarters of all households paid more in payroll taxes than in income taxes. Wellstone also blasted the Bush plan because it would squeeze out any chance for investments in education, and a prescription drug benefit under Medicare; spend Social Security and Medicare funds; spend projected surpluses that may never materialize; risk a return to federal spending deficits and higher interest rates, and also give fully 43% of the tax cut to Donald Trump and others with average incomes of more than $900,000. "We will have an alternative to the Bush tax cut plan - one that gives tax relief to working families rather than cuts for the very wealthy. And we must make the investments in our kids, in health care, in our nation's seniors. The Bush plan, however, is like Robin Hood in reverse," added Wellstone. END FORWARD Visit HPN for CONSTANTLY UPDATING NEWS on Homeless People: *************************************************************** Over 10,000 articles by or via homeless & ex-homeless people Been Homeless? Then JOIN! EMAIL Tom Boland <wgcp@earthlink.net> Nothing About Us Without Us - Democratize Public Policy ***************************************************************