Will reduce taxes for the 98% of Americans who make less than $200,000 a year. The cuts will largely be in the form of credits for health care and college tuition. Rates for the top two tax brackets will be rolled back to Clinton administration levels. This revenue will go towards childrens health insurance and funding the No Child Left Behind act.
Will reinstate the tax on capital gains above $200,000 to Clinton levels-the first $200,000 will continue to be taxed at the current, lower rate. The estate tax exemption will be raised to $4 million, but estate value beyond this will be taxed at the rate it was under Clinton.
Supports cutting the deficits in half during his first term. This can be accomplished by:
Will create 10 million jobs in four years by:
Lowered taxes by $2 trillion, and has proposed $4 trillion more, claiming the cuts will produce jobs. Revenue cuts were not paired with reduced expenditures, increasing deficits to record levels in current dollar terms. 1/3 of the tax cuts went to the 1% of Americans who earn on average $1.2 million a year. This group is less likely than others to spend tax refunds. 2/3 of the cuts benefited those who earn $200,000.
Turned huge surpluses into record deficits. While the invasion of Iraq has been expensive, more than half of the deficits comes from Bush's tax cuts. Large deficits affect the US dollar's value, making American goods more expensive in foreign markets and foreign goods cheaper here. Eventually, the deficits will have to be paid for by cutting Medicare, Medicaid or Social Security, by raising taxes for everyone, or, most likely, by doing all four.
Bush's administration will be the first since 1932 in which there were more unemployed people at the end of the term than there were at the beginning. Almost two million jobs have been lost in the private sector. Bush brags about the average of 150,000 jobs a month created over the best ten months of his administration. These ten months were preceded by three years of jobs being lost. 150,000 new jobs a month is just keeping up with the 140,000 new workers looking for jobs as the population grows and lags behind the 230,000 jobs that Clinton averaged over 96 months.
Bush claims that cutting taxes further will create jobs, but Kerry's plan entails raising taxes for a small group of people to the level they were at during the 1990s, when jobs were being created much more quickly than they have been under Bush.
- illinoisforkerry.com -