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Press Release

    How Everyday Texans Would Get Significant Tax Relief

    03/15/2001

    President Bush’s tax cut proposal would give real Texans the significant tax relief they deserve. While big government proponents label it a "tax cut for the rich," all Americans would benefit from across the board cuts in marginal rates. In fact, under Bush’s proposal the richest Americans would shoulder a higher percentage of the overall tax burden than they currently do. More importantly, over the next ten years this proposal would return $13,772 in federal taxes per Texas household.[1]

    The facts on how Bush’s proposal would provide tax relief for real Texas families:

    Single Teacher with Two Children:
    Mean Salary: $34,448[2]
    Current federal tax burden: $1,940
    Federal tax burden under Bush plan: $440
    Savings: $1,500[3]
    Married Police Officer with One Child:
    Median Salary: $45,000
    Current federal tax burden: $3,888
    Federal tax burden under Bush plan: $2,788
    Savings: $1,100[4]

    Married couple with two children:
    Median Salary: $37,776
    Current federal tax burden: $1,884
    Federal tax burden under Bush plan: $284
    Savings: $1,600[5]

    How Bush’s tax cut helps Texas families:

    First, it cuts tax rates for all everyone. The current five-rate structure would be replaced with four lower rates. The result would be that everyone who pays taxes would have more money to spend on themselves and their families.
    Secondly, Bush’s proposal doubles the child tax credit from $500 to $1,000. This would allow hard-working families to further offset the cost of childcare, groceries, or other expenses.
    Thirdly, by reducing the marriage penalty, the government is embracing rather than punishing the institution of marriage. This would allow a second earner to help provide for the family without punitive consequences from the IRS.
    Regardless of the spin coming out of Washington D.C., Bush’s tax cut proposal would provide significant tax relief for real Texas families. This isn’t a tax cut for the rich, it’s a tax cut for everybody.

    [1] "The Bush Tax Plan by State," Tax Foundation, at http://www.taxfoundation.org/bushtaxplanbystate.html
    [2] F. Howard Nelson, Krista Schneider, and Jewell C. Gould, "Survey and Analysis of Teacher Salary Trends in 1999," American Federation of Teachers, available at http://www.aft.org/research/survey99/salarysurvey99.pdf.
    [3] "Heritage Tax Calculator," The Heritage Foundation, at http://www.heritage.org/taxcalculator/.
    [4] Ibid.
    [5] Ibid.