From the Office of Senator Kerry

Monday, December 16, 2002

Washington, DC – Senator John Kerry responded to today's report in the Washington Post that the Bush Administration is planning new proposals that would "shift more of the tax load onto lower-income workers". (Jonathan Weisman, Washington Post, A3,12/6/02) Senator Kerry said, "I am stunned that at a time when low income working Americans are struggling to make ends meet, the Bush Administration is actually working to raise taxes on those who can least afford it. It is hard to believe that this Administration is so out of touch that they are considering increasing the tax burden on struggling workers while lobbying to secure huge, new tax breaks for the wealthiest Americans, claiming that the working poor don't pay enough in taxes. This is an insult to working Americans everywhere and flies in the face of American values of fundamental fairness.

"The White House should scrap this disastrous plan and instead join us to pass tax relief for Americans who are working hard and struggling to support their families. Without dipping into Social Security we should provide payroll tax relief because that is where most working Americans pay the bulk of their taxes. We should spur job creation by providing tax relief to employers who hire more workers or give their workers a raise. With the economy slumping, the Bush Administration needs to join the effort to provide middle class and low income tax relief and get this economy moving again."

On December 3, 2002, John Kerry delivered an economic speech at the City Club in Cleveland in which he called for a one-year holiday on payroll tax payments for the first $10,000 in income, an increase in the minimum wage and an expansion of the Earned Income Tax credit for low-income workers, letting rapidly growing small businesses defer up to $250,000 in federal taxes if that money is reinvested in business, simplifying the tax laws and making them more fair by closing loopholes and ending corporate welfare and increasing investment and accelerating the technology to help with the search for alternative forms of energy.