[Congressional Record Volume 152, Number 50 (Tuesday, May 2, 2006)]
[Extensions of Remarks]
[Pages E688-E689]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                      A TAX CUT FOR THE REST OF US

                                 ______
                                 

                            HON. BOB FILNER

                             of california

                    in the house of representatives

                          Tuesday, May 2, 2006

  Mr. FILNER. Mr. Speaker, the ``Tax Cut for the Rest of Us'' Act of 
2006 (H.R. 5257) transforms the standard income tax deduction into a 
``refundable'' standard tax credit. Doing so will not only simplify the 
tax code, but put

[[Page E689]]

more money into the pockets of poor Americans.
  For 25 years, refundable tax credits--such as the Earned Income Tax 
Credit and the ``additional child tax credit''--have proven to be 
simple, effective ways to help the poor.
  The logical next step is to transform the standard deduction and 
personal exemptions into a refundable standard tax credit (STC) of 
$2,000 for each adult and $1,000 for each child. The STC will provide 
all the poor with a small but badly needed tax credit, and give a tax 
cut to virtually everyone who chooses not to itemize their deductions.
  Transforming the standard deduction into a refundable tax credit will 
not eliminate poverty, but it will be an enormous benefit to the poor 
who were completely overlooked by the Bush tax cuts. The poor pay sales 
taxes, property taxes, and many other taxes, but because they do not 
pay very much in income tax, they have little to gain from tax 
simplification unless it includes something like the STC.
  Transforming the standard deduction into a standard tax credit will 
give a tax cut to those who need it most. Now is the time to pass a 
``Tax Cut for the Rest of Us.''

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