July 16, 2008

Begich Outlines Middle Class Tax Cut Plan

Measures include help with energy costs, health care, buying first home

In an effort to help Alaska families who are struggling to pay for rising energy and food prices, health care and education costs, U.S. Senate candidate Mark Begich today outlined his Middle Class Tax Cut Plan.

Begich says his plan will help Alaskans reach the goals they have for getting their children off to a good start, sending them to college, buying a home, moving up in the job market and saving for a comfortable retirement.

"This plan will help Alaska families get ahead and reclaim the opportunities our state has to offer," Begich said. "As a mayor I've worked for Alaska families and small businesses. As a U.S. Senator, I'll continue to fight for Alaska families and make the middle class the priority of economic policy, not special interests and the wealthy."

Begich's plan is aimed at helping Alaska families meet some of the biggest challenges of today's economy, by helping them manage rising fuel and health care costs; keeping current tax cuts that are already working for the middle class; helping Alaska families own a home; making child care and care for aging parents easier to afford; and providing tax breaks for college, vocational education and career education.

Some of the specifics of the Begich Middle Class Tax Cut Plan include:

An increased tax credit for Alaska families to purchase hybrid and alternative fuel vehicles, more efficient boat motors, and install more efficient home appliances and weatherization products. Begich will also push for new tax credits for fishing families facing high energy costs.

For two years after returning from military service, raising the personal exemption on income taxes from $3,200 to $5,000 for members of the military, including National Guard and Reservists.

A new tax-free Individual Homeownership Account that will allow Alaska families to save money for a down payment on their first home. Begich also supports a permanent tax credit (equivalent to an interest-free loan for 10 percent of the home's cost, up to $8,000) for first-time home buyers.

Double the current $6,000 Dependent Care Credit to help cover child care expenses and expand the credit to include care-giving expenses paid on behalf of an elderly parent.

"Middle class Alaska families that I talk with aren't looking for special help, they just don't want to be penalized for getting ahead," Begich said. "Our federal tax policies should help Alaska families achieve their dreams, but unfortunately the last eight years under the Bush administration has left middle class Alaska families behind."

Begich estimates his Middle Class Tax Cut Plan includes over $140 billion in tax cuts for hard-working families. By allowing current tax perks that aren't working for Alaska middle class families to expire, $3.4 trillion would be freed up over the next ten years. Additionally, the current annual tax gap, or difference between taxes owed and paid, is estimated to be $345 billion a year. Begich believes the bottom line is there are ways to put money back into the pockets of middle class families while also reigning in overall spending.

Begich noted that a smaller, yet similar, effort to crack down on those who owed the City of Anchorage millions in delinquent fines and fees has netted more than $16 million over the past five years.

To read Begich's entire plan, go to www.begich.com.

From a Mark Begich press release