[Congressional Record Volume 144, Number 1 (Tuesday, January 27, 1998)]
[Senate]
[Pages S48-S49]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. COVERDELL (for himself and Mr. McCain):
  S. 1569. A bill to amend the Internal Revenue Code of 1986 to raise 
the 15 percent income tax bracket into middle class income levels, and 
for other purposes; to the Committee on Finance.


                THE MIDDLE CLASS TAX RELIEF ACT OF 1998

  Mr. COVERDELL. Mr. President, I rise today to introduce the Middle 
Class Tax Relief Act of 1998. Last year, this Congress passed historic 
legislation: the Balanced Budget Act providing the first balanced 
budget in nearly thirty years, and the Taxpayer Relief Act providing 
tax relief for the first time in sixteen years. As a result, faith in 
the Nation's economy is strong, and we are seeing the results of that 
faith.
  Now is the time for us to consider sweeping middle class tax relief. 
This tax relief proposal accomplishes several goals. First, it directs 
the vast majority of the relief to those who feel the tax squeeze the 
most: middle-income taxpayers.
  Second, because it is across-the-board relief, every middle class 
taxpayers wins. Every American earning $25,000 taxable income or more 
would see relief. Estimates by the Tax Foundation show that 
approximately 25 million taxpayers would see tax relief this

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year with two-thirds earning less than $75,000 annually.
  Third, it provides significant marriage penalty relief without adding 
complexity to the tax code.
  Fourth, this is one of the very few proposals that is also entirely 
consistent with the long-term goal of a flatter, simpler tax code.
  My proposal, the Middle Class Tax Relief Act, achieves these goals by 
raising the roof on the 15% individual income tax bracket. In other 
words, it returns middle class taxpayers to the lowest individual 
income bracket. Married couples with taxable income of $70,000 or less 
would be taxed at the 15% tax bracket, an increase over the 1998 
threshold of $42,350. The threshold for heads of households would be 
$52,600, an increase over the current threshold of $33,950. Finally, 
the thresholds for single workers would be set at $35,000, an increase 
over the current threshold of $25,350.
  In the coming weeks, a great deal of discussion will focus on 
providing the American people with the tax relief they need and 
deserve, and how that is to be accomplished. There are a number of 
proposals providing tax relief, some of which I am a supporter. 
However, I believe the Middle Class Tax Relief Act will be successful 
ultimately because it is actually achievable during this Congress. I 
ask my colleagues to join me in this effort.
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