U.S. Senate Republican Policy Committee - Larry E. Craig, Chairman - Jade West, Staff Director
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August 2, 1999

Nonpartisan Analysis Shows Benefit To Middle-Class Families

Senate's Tax Cut: Big Savings for the Future

According to the Center for Data Analysis, run by the nonpartisan independent Heritage Foundation, the Senate's tax-cut bill will provide significant tax relief to America's middle-class families. For instance, a two-earner, four-person family making $75,000 would receive a $1,403 cut in the family's income tax bill in 2006. The family next door with $75,000 in income earned by a single earner would receive a $1,067 income tax cut. That's the kind of the money that can go a long way toward allowing families and America to save for our future.

With real relief like this, it is no wonder that the Republican tax-cut bill received bipartisan support; yet, it makes President Clinton's anti-tax-cut extremism all the stranger. How could the President not support real tax relief when it can be done in a fiscally responsible manner? CBO projects a non-Social Security surplus over the next 10 years of $1 trillion (and $3 trillion overall). The tax cut is financed exclusively with non-Social Security dollars -- it's merely returning income tax overpayments to the people who made them.

Single Earners:

  • A family of four with a single earner making a $75,000 income (in 1999 dollars) would receive a $449 tax cut in 2002, and $1,067 in 2006.
  • An individual with an annual $37,500 income (in 1999 dollars) would receive a $269 tax cut in 2002, and a $584 cut in 2006.

Two-earner Families:

  • A family of four with an annual $75,000 income (in 1999 dollars, and income split 60-40 between spouses) would receive a $1,067 tax cut in 2006 if the family filed jointly. A family making $95,000 would receive the same tax cut filing jointly, but -- because of the Senate bill's marriage penalty relief -- would receive a tax cut of $1,777 if the spouses filed separately. [Note this latter figure was based on the bill as reported, and so the figure will be higher as a result of the Hutchison amendment which accelerates savings to marriage relief provisions.]
  • A family of four with an annual $75,000 income (1999 dollars, but income split 55-45 between spouses) would receive a $1,403 tax cut if filing separately, and a family making $95,000 would receive $2,474 if filing separately (both figures pre-Hutchison amendment).

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