| BUSINESSWEEK ONLINE : DECEMBER 13, 1999 ISSUE | ||||||||
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| NEWS: ANALYSIS & COMMENTARY
Bushonomics TAXES RATES Bush promises a big rate cut over 5 years. The biggest winners are at the top and the bottom. Those with taxable incomes between $12,000 and $43,000--get a relatively paltry cut. MARRIAGE PENALTY RELIEF Bush scores points with social conservatives by providing an extra deduction to second earners. ENDING THE "DEATH TAX" Inheritance tax relief is another crowd-pleaser--with supply siders and small business interests. AID FOR FAMILIES Bush's plan for the working poor: cut rates by one-third for the first $12,000 of taxable income earned by a couple. He'll double, to $1,000, the current child credit and make it available to parents earning up to $200,000. He'll also expand educational savings accounts. GOODIES FOR TECH Bush would make the R&D credit permanent. But he ducks the question of whether states should be able to tax e-commerce. He's the first GOP Presidential hopeful in memory not to propose cutting capital-gains taxes. OTHER ECONOMIC ISSUES SPENDING Bush pledges fiscal restraint. He will propose a two-year budget cycle--a favorite of governors--and vows to keep Social Security funds off limits. But his tax plan costs a projected $483 billion over 5 years, and $1.3 trillion over 10. TRADE Like his father--and Clinton--Bush strongly backs free trade. He supports China's entry into the World Trade Organization and wants fast-track negotiating authority. He'd take a tougher line than Clinton toward China, though. ENTITLEMENTS Vows to shore up Baby Boomer retirement prospects. But he's avoiding specifics. He rejected a call by some advisers for a cut in the payroll tax. He supports both private Social Security investment accounts and portable Medical Savings Accounts. _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ BACK TO TOP |
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RELATED ITEMS Bush's Politically Correct Tax Plan TABLE: Bushonomics Can This Hoosier Fix America? (extended) ONLINE ORIGINAL: The Brains Behind Bush's Tax Plan INTERACT E-Mail to Business Week Online | |||
