G.O.P. To Raise Taxes On Middle Class To Pay For Big Oil Tax Cut
G.O.P. To Raise Taxes On Middle Class To Pay For Big Oil Tax Cut
May 11, 2006
McCaskill Calls on Talent to Oppose $70 Billion Tax Cut to the Wealthy
ST. LOUIS -- Today, the U.S. Senate is considering a bill that removed the College Tuition Tax Deduction in order to pay for $5 billion in tax breaks to big oil companies. U.S. Senate Candidate Claire McCaskill called on Senator Jim Talent to oppose the $70 billion bill that would give the wealthiest Americans an average $82,000 tax cut while the average American receives only $20.
"It's disgraceful that Washington talks as if they care about how everyday people are hurting at the gas pump, but then turn around and give another $5 billion to the big oil companies," McCaskill said. "What's worse is that these tax cuts to big oil are given out on the backs of hard working Missourians who are trying to put their kids through college. I call on Senator Talent to oppose this bill."
In 2003, 64,506 Missouri students and their families relied on the College Tuition Tax Deduction. The removal of this provision equates to nothing less than a tax increase on those families by as much as $153 million. Additionally, the bill excludes the Saver's Tax Credit, which allowed 139,243 lower-income Missourians to contribute more into savings plans. It also, cuts the educator expenses tax deduction, hurting 64,567 Missouri teachers.
"Just last week, Missouri's Senator Talent proudly declared 'Washington gets it'. This tax bill is another example that Washington doesn't have a clue," McCaskill said. "Only in Washington does it make sense to cut taxes to big oil companies making record profits but increase taxes on the middle and lower incomes families as well as teachers and students."
Today's $70 billion tax bill also provides additional tax cuts to America's most wealthy. Americans in the middle of the income distribution -- earning approximately $36,000 -- receive a paltry benefit from the tax cuts, amounting to about $20. Americans with an average income of $1 million disproportionately receive more than $42,000 of the tax cuts.
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