Tim Hutchinson: “I rise today in support of the ``families first'' budget alternative, a budget that will reduce the deficit more than…”

“I rise today in support of the ``families first'' budget alternative, a budget that will reduce the deficit more than the administration's budget and still provide progrowth incentives and, most importantly, middle-class tax relief. The issue is, will we cut wasteful Government spending in order to provide relief to overtaxed American families? Today, most American families pay more in Federal taxes than they spend for food, clothing, transportation, insurance and recreation combined. This is a sharp and shameful contrast with the years after World War II, when Federal income and payroll taxes took only 2 percent of the income of a median family of four. Now that burden has increased to 24 percent. During the past four decades, there has been a steady erosion in the value of the personal exemption for families with children. If the shelter of that exemption had kept pace with inflation and remained a fixed percentage of per capita income, it would now be over $8,000 instead of the current $2,300. Recognizing that, the bipartisan National Commission on Children proposed, as its most important recommendation, a tax credit of $1,000 per child. And only last year, the Democrat nominee for the Presidency promised that ``middle class taxpayers will have a choice between a children's tax credit or a significant reduction in their income tax rate.'' This budget plan provides an opportunity for the President to fulfill his promise.”