House Democrats Propose Tax Cut for Middle Class in Contrast to Republican Plan

House Democrats, under the leadership of Representative Richard A. Gephardt, have announced a plan to propose a tax cut for individuals earning less than $75,000 a year, a move aimed at targeting the struggling middle class. This proposal sets House Democrats apart not only from the ruling Republican House but also from their own White House, which is expected to present its own domestic programs and possibly a tax cut plan on Thursday. Gephardt's announcement emphasizes that his party's agenda will come from the people, not the White House, and promises to work closely with the President and Senate colleagues while maintaining independence.

Key Takeaways:

• The House Democrats' proposed tax cut targets individuals earning less than $75,000 a year, benefiting about 69 million taxpayers, according to Gephardt's office.
• The proposal is estimated to cost as much or more than the Republican plan, priced at $20 billion a year, which would cut the bill of an average eligible taxpayer by about $290.
• Republicans have not stated how they would pay for their tax cut, whereas Gephardt promised to find a financing device that does not increase the Federal deficit.
• The proposed tax cut is part of Democrats' larger campaign platform focusing on directing Federal money and benefits to the middle class and opposing Republican policies they see as favoring the wealthy.
• Democrats have also pledged to force Republicans to present a detailed plan to balance the Federal budget before pursuing a constitutional amendment to balance the budget.
• House Democrats will oppose the Republican plan to cut the capital gains tax, offering a competing plan to reward companies that distribute more profits to workers.

Statistics:

• 69 million taxpayers are expected to benefit from the House Democrats' proposed tax cut.
• The Republican plan to cut the capital gains tax would omit the wealthiest taxpayers and the poorest, who do not pay taxes and so would not be eligible for the credit.
• Estimated cost of the Republicans' tax cut: $20 billion a year.
• Estimated savings for the average eligible taxpayer under the House Democrats' plan: $290 per year.
• The House Democrats' proposal could potentially face similar legislative hurdles as Republican plans in the past, having little chance of passing the Republican-controlled Congress.

Sources:

• The New York Times
• Representative Richard A. Gephardt's speech to the Center for National Policy
• Laura Nichols' statement as Gephardt's spokesperson
• Representative Bill Archer's statement
• CAPTION(S): Stephen Crowley's photo of Representative Richard A. Gephardt