U.S. Senate Republican Policy Committee - Larry E. Craig, Chairman - Jade West, Staff Director
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August 5, 1999

Policy Points on the Taxpayer Refund/Relief Act of 1999

  • The Taxpayer Refund and Relief Act of 1999 is the largest middle-class tax cut since Ronald Reagan was president.

  • Over the next ten years, the federal budget will run a total surplus of $3 trillion and a non-Social Security surplus of $1 trillion.

  • The Republican budget leaves untouched the $1.9 trillion Social Security surplus, it leaves a $300 billion reserve fund for other priorities, and it cuts taxes by $792 billion.

  • Over five years, this bill ($156 billion) and the Balanced Budget Act of 1997 ($85 billion) exactly offset President Clinton's 1993 tax hike of $241 billion -- an American record.

  • Without this bill, federal tax receipts would be 20.7% of GDP next year -- the highest level since WWII. And personal income-tax receipts would be 10% of GDP next year -- an all-time U.S. record.

  • Fully 70% of the bill's tax relief in 2004 goes to taxpayers making less than $100,000.

  • Who now pays the federal tax bill? Those making $50,000 or more pay 79%; those making $75,000 or more pay 61%; and those making $100,000 or more pay 46% of federal taxes.

  • If the five major provisions of the tax refund bill were fully phased-in today, a single taxpayer with a $50,000 income would receive an $806 tax cut; a head of household with a $75,000 income would receive a $954 tax cut; and a married couple filing jointly with a $75,000 income would receive a $2,524 tax cut.

  • Almost two-thirds of the bill's relief ($508 billion) goes to family and broad-based tax cuts.

  • These tax cuts do not touch a cent of the Social Security surplus in any year; meanwhile, the Clinton/Gore budget raids Social Security in three years for a total of $29 billion.

  • The GOP budget and tax cut will reduce public debt by 60% and achieve over $200 billion more in public debt reduction than would the Clinton/Gore budget over the next 10 years.

  • Medicare will run a $130 billion surplus over the next 10 years -- less than half of the Republican budget's $277 billion reserve fund.

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