Lieberman Tax Plan Aims To 'Ease The Middle Class Squeeze'

by Leroy Baker, Tax-News.com, New York

14 January 2004

As Democratic presidential nominees strive to outdo one another on the tax front, Senator Joseph Lieberman is the latest candidate to weigh into the tax debate, with proposals that will undo many of President Bush's 2003 tax cuts.

Claiming that his plan will deliver tax savings to 98% of the middle class, Lieberman took the opportunity on Monday to point out the shortcomings in the tax plans of fellow Democrat nominees, Wes Clark and Howard Dean.

"Wes Clark would give a tax cut to just a quarter of taxpayers, and Howard Dean would raise taxes on the middle class," Lieberman remarked whilst on the nomination campaign trail in Oklahoma.

"This president's answer to the middle class squeeze is massive tax breaks for corporations and people who don't need them. Meanwhile, Howard Dean makes the squeeze worse and Wes Clark leaves too many in the middle-class behind," the Connecticut Senator added.

According to Lieberman, ‘easing the middle class squeeze’ will mean:

• A married couple earning $50,000 could expect to save up $500.
• Couples earning $75,000 could expect to save up to $1,000.
• Couples earning $100,000 could expect to save up to $1,500.
• Couples earning $150,000 could expect to save up to $2,800.

Whilst he intends to retain the parts of President Bush’s 2003 tax cuts benefiting the middle classes, Lieberman has let it be known that he would repeal the dividend tax cut and reset the top two brackets of income tax lowered under the Bush reforms. He is also calling for a special “recapture” bracket for the highest income earners, who have benefited from lower rates.

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