Brady: Middle Class Big Winners in Congress’ Tax Relief Plan
Cites Analysis Showing 76% of Tax Relief Going To Those Less Than $75,000, With Almost 50% Of Relief Going To Those Earning $24,000 - $60,000

Congressman Kevin Brady, armed with a Ways & Means Committee analysis released Wednesday by Chairman Bill Archer, reiterated the fact that the vast bulk of the tax cuts in Taxpayer Relief Act of 1997 would go to the middle class. The analysis discredits charges by President Clinton’s administration that only the rich will benefit.

"Seventy-six percent of the tax relief goes to those Austin County families who make less than $75,000," said Brady. "In fact, almost half of the tax relief goes to those earning between $24,000 and $60,000. These taxpayers are not rich, they are the heart of the middle class."

An analysis by Congress’ Joint Economic Committee showed that the Clinton administration’s method for computing income (known as the Family Economic Income method) can inflate income by as much as 73 percent, making the tax benefits of middle-class taxpayers appear as though they are going to upper-income taxpayers.

"Middle-class taxpayers would be shocked to learn that the Treasury Department considers them rich and not in need of tax relief. I disagree," stated Brady. "These middle-class workers are the individuals we are trying to help by letting them keep more of what they earn, so they don’t have to struggle to make ends meet." Brady also noted that taxes consume more of a family’s income than food, clothing, housing and transportation combined. "Today, one parent works to pay the bills, the other to pay the taxes."

"Keep in mind, this is our money that we have worked hard for; and for Washington to demand more and more of it is unfair. Our tax relief plan restores fairness and gives middle-class families the freedom they deserve."

[For a copy of Chairman Archer’s analysis, or for more information on the tax issue, please call Bill Greene at 202-225-2901]