Scott Gottlieb, CPA
Assistant editor: Susan A. Maffetone, CPA
George Bush Tax Plan
the George Bush web site
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.
Bush’s Tax Cut Proposal
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.
Encourage entrepreneurship and growth: Cap the top tax rate
at 33 percent (down from the current 39.6 percent). Eliminate
the death tax. Make the research and development tax credit
Promote charitable giving and education: Extend the deduction
for charitable contributions to the 80 million taxpayers that
do not itemize, and raise the cap on corporate giving. Increase
the annual contribution limit on Education Savings Accounts
from $500 to $5,000 per child.
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