Issue Position: Middle Class Tax Cut Plan

Issue Position

Issue Position: Middle Class Tax Cut Plan

Alaska has always been a land of opportunity for those who work hard. Unfortunately, the Bush economic plan has left Alaska's middle class families behind, benefiting only the wealthiest of the wealthy. As a small businessman, husband, and father, Mark Begich understands the pressure Alaska families face today to make ends meet and get ahead. Rising energy and food prices, health care and education costs are stretching Alaskans' pocketbooks. Prices at the pump have more than doubled since 2001. Health care premiums rose 14.2 percent since 2001. College tuition rose 29 percent since 2000. Food costs have risen almost 5 percent in the last year. The child care cost for two children is over $1,200 a month. At the same time, Alaska wages have stalled and job growth is slowing.

Mark Begich's middle class tax plan will help Alaska families get ahead and reclaim the opportunities our state has to offer. As mayor, Mark has always worked for Alaska families and small businesses. As a U.S. Senator, Mark will fight for Alaska families and make the middle class the priority of economic policy, not special interests and the wealthy. Mark's plan will help Alaska families reach the dreams they have for their families—getting their kids off to a good start, sending them to college, buying a home, moving up on the job ladder, saving for a comfortable retirement.

Helping Alaska Families Cover Rising Costs:

* Mark Begich Will Help Alaska Families Reduce Fuel Costs. Mark Begich will push for increased tax credits for Alaska families to purchase hybrid and alternative fuel vehicles and efficient boat motors, and install more efficient home appliances and weatherization products. He will also push for new tax credits for fishing families facing high energy costs this year.

* Mark Begich Will Help Retiring Alaskans Afford Health Care. Mark Begich wants to allow older Alaskans (55-64 years of age) that are not yet eligible for Medicare to buy-in to Medicare or the Federal Employees Health Benefit Plan, and provide them with a $2,500 tax credit to help cover the costs.

* Mark Begich Will Help Alaska Veterans Returning Home. To thank those who have served on active duty in Iraq and Afghanistan since 2001, Mark Begich wants to provide an increase in the personal exemption to $5,000 (up from the current $3,200) for members of the military for the first two years after they return home from service, including the National Guard and Reservists.

Keep Current Tax Cuts That Are Already Working For Alaska Families:

* Extend existing middle-class tax cuts. Mark Begich supports extending the tax cuts that work for Alaska families, such as marriage penalty relief and the increased child tax credit.

* Provide Relief For 43,400 Middle-Class Alaskans From The "Stealth Tax." The Alternative Minimum Tax (AMT), or "stealth tax" was originally created in 1969 to make sure that the 155 wealthiest Americans could not avoid taxation. Because this stealth tax was not inflation-proofed, it will mean higher taxes for approximately 43,400 middle-class Alaska families next year. The AMT unfairly punishes middle-class families moving up the ladder with a higher tax rate intended for millionaires. Mark Begich supports permanent relief for middle-class Alaskans from the stealth tax.

Helping Alaska Families Own a Home:

* Help Alaska Families Save For Their First Home. With increasing food, gas, and other costs, Alaska families are having a hard time putting away money for their first home. Mark Begich would create tax-free Individual Homeownership Accounts that will allow Alaska families to save money for a down payment on their first home.

* Create A Permanent Tax Credit For First-Time Homebuyers. Mark Begich wants to help hard-working Alaskans purchase their first home. With the median price of single-family homes rising nearly 50% just over the past five years, Begich wants to make buying a first home more affordable. That is why he supports making permanent a refundable tax credit for first-time home buyers that is equivalent to an interest-free loan for 10 percent of the home's cost, up to $8,000.

Helping Alaska Families Raise Their Children and Care for Aging Parents:

* Help New Parents Start Out Right. All parents know that new babies are expensive—diapers, car seats and baby food are all costs that add up fast. Mark Begich will expand the Child Tax Credit to help new parents cover the "start-up costs" of caring for a young child by adding a $1,000 tax credit for each of the first three years of a child's life in addition to the existing $1,000 annual child tax credit.

* Help Alaskans Afford Child Care. For many Alaska families with children, child care can cost as much as college. Mark Begich wants to double the current $6,000 Dependent Care Credit to help cover child care expenses for Alaska families.

* Help Alaskans Care for Their Aging Parents. Mark Begich wants to help the growing number of Alaskan families who are in the "sandwich generation"—raising children and caring for aging parents. Mark Begich wants to expand the Dependent Care Credit to include care-giving expenses paid on behalf of an elderly parent.

Helping Alaska Families Afford College, Vocational Education, and Career Education:

*Mark Begich Will Help Alaskans Pay for College and Vocational Education. College is a necessity that's priced like a luxury. In addition to the Hope Scholarship and Lifetime Learning Credit, Mark Begich wants to bring a broad-based college and vocational education tuition tax break for all middle class Americans by providing deductions of up to $10,000 per year (from the current $4,000).

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