CAN BUSH'S TAX PLAN AID CALIFORNIA?Byline: Bill Hillburg Washington Bureau WASHINGTON - The payoff on President Bush's proposed income tax cut would range from $1,213 for a Southern California Southern California, also colloquially known as SoCal, is the southern portion of the U.S. state of California. Centered on the cities of Los Angeles and San Diego, Southern California is home to nearly 24 million people and is the nation's second most populated region, family of four at the poverty level to $24,334 for a household pulling in $500,000 a year. The Bush plan, approved Thursday by the House but awaiting Senate approval, would cut tax rates across the board. A smaller cut has been proposed by Democrats who argue that Bush's plan is a windfall windfall An unexpected profit or gain. An investor holding a stock that increases greatly in price because of an unexpected takeover offer receives a windfall. for the rich and could bust the federal budget. But Republicans argue that the Democrats' plan, touted as a tax break for the middle class, is statistically out of sync Out of Sync: A Memoir is the upcoming autobiography of American pop singer Lance Bass, set to be published on October 23, 2007. It features an introduction by Marc Eliot, a New York Times with Southern California's cost of living. Both the Democratic and GOP plans would cut income taxes for Southern California California (kăl'ĭfôr`nyə), most populous state in the United States, located in the Far West; bordered by Oregon (N), Nevada and, across the Colorado River, Arizona (E), Mexico (S), and the Pacific Ocean (W). families earning $42,791 - the region's median for a four-person household - from $2,636 to $1,036, a $1,600 decrease. There are no income tax breaks in the Democrats' plan for households earning $45,201 or more. Their proposal would only lower the lowest current tax rate, for married couples with two children earning $45,200 or less, from 15 percent to 10 percent. It would also cut payroll withholding taxes The amount legally deducted from an employee's wages or salary by the employer, who uses it to prepay the charges imposed by the government on the employee's yearly earnings. for low-income workers. ``That $40,000 a year might be great in Arkansas,'' where the median is $29,019, said Rep (programming) REP - A directive used in IBM object code card decks (and later PTF Tapes) to REPlace fragments of already assembled or compiled object code prior to link edit. . Howard ``Buck'' McKeon, R-Santa Clarita, who supports the president's plan. ``But it doesn't work for my constituents. ``In Southern California, a family can easily be earning $50,000 to $60,000 and still just be getting by.'' Rep. Brad Sherman Bradley J. "Brad" Sherman (born October 24 1954) is an American politician. He has been a Democratic member of the United States House of Representatives since 1997, representing California's At-large congressional district. , D-Woodland Hills, said his party's plan, by targeting relief at the needy need·y adj. need·i·er, need·i·est 1. Being in need; impoverished. See Synonyms at poor. 2. Wanting or needing affection, attention, or reassurance, especially to an excessive degree. , is fairer and makes more fiscal sense. ``We're going to provide relief to just about everyone who pays taxes,'' said Sherman, noting that other Democratic proposals would trim estate taxes and other federal levies. ``But we're not going to give as big a break to millionaires, including a number of people I represent in Malibu. ``We need to first make sure we can pay down the national debt and be in a position to keep our Social Security and Medicare promises to baby boomers See generation X. . When they retire, we're going to face a fiscal challenge that could break many countries.'' Rep. Adam Schiff
Adam B. Schiff (born June 20 1960) is an American politician. He first served in the California State Senate. , D-Pasadena, who voted against the Bush plan Thursday, is primarily concerned that it was offered before the federal budget was set. ``We have to have a budget in place that will protect Medicare and Social Security before we can act on a tax cut,'' Schiff said. ``When we see where the money is coming from and the needs, we can deal with tax cuts. At that time, I'll entertain any proposals, including those from President Bush. But I also intend to judge any tax plan by its impact on my constituents,'' Schiff said. Rep. David Dreier David Timothy Dreier (born July 5, 1952), American politician, has been a Republican member of the United States House of Representatives since January 1981, representing California's 26th congressional district (map). He was first elected to the U.S. House at age 28 in 1980. , R-Covina, a co-sponsor of Bush's tax-cut bill, said the plan works around the current budget. ``We have a budget in place, and this plan takes that into account,'' he said. Dreier also criticized Democrats for portraying themselves as the sole defenders of the poor and middle class. ``They talk about $40,000 or $50,000 as middle class. The reality in Southern California is $60,000 to $100,000,'' Dreier said. ``It goes to show you how fallacious it is for them to wage class warfare against us.'' Bush's plan offers a tax cut to low-income families. But there would be additional decreases in other current tax rates of 28 percent for families with a household income from $45,201 to $109,250; 31 percent for $109,251 to $166,500; 36 percent for $166,501 to $297,350; and 39.6 percent for $297,351 and up. Decreases would be phased in between this year and 2006. Bush's proposal would also double the current child tax credit from $500 to $1,000. Supporters of the Bush plan also estimate that the neediest taxpayers would receive the largest percentage breaks on their federal income taxes. Those earning $33,300 would see their tax fall 100 percent, from $1,213 to zero, while those at the $42,791 median would get a $1,600 cut, down 60.7 percent from current levels. CAPTION(S): box Box: BUSH TAX CUT IMPACT SOURCES: Joint House Senate Committee on Taxation, Heritage Foundation. Jorge Irribarren/Staff Artist |
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