Across the country families are struggling and Democrats have responded with a plan to provide relief to middle class and working families. The deal announced by Speaker Pelosi is progressive and a sharp departure from the policies of George W. Bush. Rep. Barney Frank called it the most progressive tax bill he has seen in the past decade. Here are the facts:
- The new agreement provides $28 billion in tax relief for working families who haven't seen any tax relief in the last seven years. These families got nothing from the Bush tax cuts. Now, they will finally get assistance when they need it most.
- The plan abandons the Bush policy of providing tax relief to the well off. In 2001 and 2003, the President's tax cuts gave 37 percent and 67 percent respectively of the benefit to taxpayers making more than $200,000. Under the new stimulus package announced last week, taxpayers making more than $200,000 receive nothing while families earning between $48,000 and $86,000 will receive the largest share - nearly one-third - of the benefits.
- The Bush administration backed down from their initial proposal that would have provided no relief to 35 million taxpayers with incomes largely under $30,000. Democrats ensured these Americans will receive $28 billion in tax relief.
Let's look at one example. Under the new agreement a single mother with two children making $20,000 will receive a $900 check. If that same mother was receiving food stamps, one stimulus proposal would have offered her an additional $1 per day in food stamps, or approximately $300 for the rest of the year.
Democrats could offer this single mother $300 in relief or $900 in relief. The choice was easy. When given the opportunity to provide an additional $600 in assistance to a single mother of two making $20,000 a year, Speaker Pelosi made the same decision that the single mother would have made.
In politics, no compromise is ever perfect, but the new agreement is progressive and gives tax relief to middle class families who are struggling. Americans want their government to address problems and provide solutions. And this time, it appears that their expectations will be met.