Friday, June 16, 2000

Gore vs. Bush on tax cut plans

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Gore plan         Vice President Al Gore, presumptive Democratic nominee for president, unveiled a package of tax proposals that would cost $500 billion over 10 years. Highlights:         • Expand tax credits for day care.         • Allow parents who stay at home with infants to use child care tax credits by claiming assumed child care expenses of $500.         • Provide tax credits for after-school care.         • Give a $3,000 tax credit for long-term care.         • Expand earned income tax credit for poor Americans.         • Give married couples the same standard deduction as if they were single.

Bush plan         Texas Gov. George W. Bush, presumptive Republican nominee, proposes a tax cut of $1.3 trillion over 10 years, primarily with an across-the-board income tax reduction. Highlights:         • Double child credit to $1,000.         • Replace five-rate income tax structure of 15, 28, 31, 36 and 39.6 percent with four lower rates: 10, 15, 25 and 33 percent.         • Increase annual contribution limit on Educational Savings Accounts from $500 to $5,000 and expand them beyond college down to kindergarten.         • Eliminate the so-called death tax on estates of deceased persons.         • Restore 10 percent deduction for two-income married couples.         • Eliminate the Social Security earnings test.

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