FROM THE OFFICE OF PUBLIC AFFAIRS

The Treasury Department today officially releasedrevenue estimates for the tax proposals and other revenuemeasures included in the Clinton Administration’s FY 1998Budget through the year 2007. Previous estimates ran only through2002. The Administration’s tax relief proposal is targetedprimarily for middle income taxpayers to help with raising achild and education.

"President Clinton strongly believes thatwhile working within the constraints of a balanced budget, weshould also invest in critical priorities for our nation, such aseducation, and provide tax relief for the middle class,"said Treasury Secretary Robert E. Rubin.

The Treasury Department estimates that theAdministration’s Budget proposals would provide $224.8billion in tax cuts over the FY 1998 - FY 2007 period, with $98.4billion of the tax cuts coming between FY 1998 and FY 2002.

Secretary Rubin said, "from the beginning ofthe Clinton Administration, our budgets have been based onrealistic and prudent economic assumptions. As a result, actualbudget deficits have come in under the projected deficits each ofthe past four years."

The bulk of tax relief is in the form of taxcredits for dependent children ($97.3 billion) and tax creditsand deductions for college tuition and job training ($87.7billion). These tax cuts would be paid for, in part, through theelimination of unwarranted tax benefits and the closing ofcorporate loopholes totaling $73.3 billion between FY 1998 and FY2007 ($34.3 billion between FY 1998 and FY 2002). The Budget alsoproposes the extension of recently expired trust fund excisetaxes and other revenue measures that are expected to yield $87.3billion over the

FY 1998 - FY 2007 period ($41.7 billion FY 1998 -FY 2002).