Dianne Feinstein: “I rise to introduce a bill, with Senator Chafee, to freeze the top income tax rate at its current level of 38.6 percent…”

“I rise to introduce a bill, with Senator Chafee, to freeze the top income tax rate at its current level of 38.6 percent, until such time as the Federal budget returns to surpluses. We believe the ballooning deficit is bad for the economy, bad for interest rates, and bad for the health of the Nation. Under current law, the top income tax rate is scheduled to drop from 38.6 percent to 37.6 percent in 2004 and then to 35 percent in 2006. This rate is applied to the adjusted gross income of those who earn over $312,000. This top rate freeze would save $88 billion between now and 2010, and $132 billion through 2012, every penny of which would go toward reducing the Federal deficit. Everyone should understand that this top tax rate is paid by just 908,000 of the more than 128 million taxpayers nationwide, just 0.7 percent of American taxpayers. This is not a time for tax policies which benefit only a small portion of the population. It is a time for fiscally responsible policies that will ensure long-term growth and provide an immediate stimulus to our economy. In June 2001, I voted for the President's tax plan. It was truly a different time: 9/11 had not taken place; war had not appeared on the horizon; revelations of corporate fraud had not surfaced; and a recession was not evident. Those times are as different from today as day is from night.”