European Stars and Stripes (Newspaper) - February 19, 1993, Darmstadt, Hesse                                How tax hikes would affect families Washington apr president Clinton a proposed tax increase would Cost the typical Middle in come family of four an extra $10 to $12 a month. Most lower income families would avoid the pain altogether while High canc is would be hit hard. For most families and individuals with adjusted Gross incomes Between $30,000 and $100,000 a the Middle class a the sole direct Impact of the presidents deficit reduction proposal would be in higher Energy prices. If enacted by Congress the program would raise a gasoline prices by about Ivi cents a gallon a Home heating Oil by 8v4 cents. A natural Gas by 26v4 cents per thousand cubic feet. A and the average monthly electric Bill by $2.25. One third of the tax based on a fuels Energy Content would be imposed july 1, 1994 it would be fully effective two years later. Economists generally agree that any major Energy tax increase a this one would raise More than $71 billion Over four years a tends to inflate the prices of most goods and services. Thus every family would be Likely to feel effects of the Energy tax beyond the direct increase in Energy prices. Most of the 70 million couples and individuals earn ing less than $30,000 a year would have most of the Energy tax increases offset by government spending programs according to the Clinton administration. In other aspects of the plan taxes paid by social Security recipients would increase. The less than one Quarter of recipients who now pay tax on up to half their monthly benefits would be taxed on up to 85 percent instead. Moire than 90 percent of taxable benefits arc paid to older americans with incomes Over $30,000 a year. A. A a a a a a. A. The earned income credit which How benefits working families with children and incomes of $22,370 or less would be expanded for the first time to cover childless workers. Spending for food Stamps and an Energy assistance program for Low income households would be increased. About 57 percent of Clinton a total tax increase which would average $60 billion a year would be paid by those with annual incomes of $200,000 and Over a those who in Clinton a View profited most from the tax cuts of the 1980s. On average these Peoples Federal taxes now 20.9 percent of pre tax income would Rise to 23.8 percent. The average $200,000-plus earner would pay an extra $34,000 a year. Igop protests Clinton push to boost taxes Washington a democrats arc hailing president Clinton a economic plan As the elixir to rejuvenate an ailing Economy while scornful republicans arc promising to strike Back with a version that would Cut deeper into spending and tax americans less. A this program raises taxes increases spending and i done to think that a what this country needs a a sen. Phil Gramm a Texas said wednesday As republicans scoffed at the $499 bit lion mix of spending cuts and taxes. Following Clinton a remarks to a joint session of Congress democrats rallied to their first president in a dozen years with a chorus of support. But they conceded the program might be Tough to sell. A this is a plan for americans future that leaves no one out and leaves no one behind a a said rep. Richard a. Gephardt do the House majority Leader. Rep. Dan Rostonkowski d-lll., chairman of the tax writing House ways and Means committee said americans have shown they Are willing to sacrifice. He said the trick now is to convince lawmakers. Quot what we be got to do is convince the members Here in Washington that it s going to be a fair appropriation of Burden on everyone a a he said. And if the Bill stalls in a partisan quagmire democrats made it Plain they would place the blame on republicans. House minority Leader Robert ii. Michel Points an accusing Finger at the democrats during the republicans response to president Clinton a address. The Republican message was simple. A when you hear a Democrat Call for taxes do not ask for whom the tax rises a it will Rise for you Quot said rep. Robert h. Michel r-iii., the House minority Leader who delivered the party a official response. Clinton a address won Strong support from former presidential rival Ross Perot. A i thought it was a Good speech a very positive speech a Perot said on the Abc program nightlife. A i would expect the american people would also react favourably to it. But Perot added a a it a a Good first step but then the devils in the  environmentalists cheer Public lands plans Washington a the Clinton administration is seeking a Radical reversal of a decades old philosophy that has lost billions of Federal dollars through subsidies for Timber water minerals and Range land users. President Clinton a economic plan reflects an Effort to Start making Money from private use of Public lands by phasing out Low Cost Timber sales charging royalties for mining of hard Rock minerals tacking a surcharge on water sales and increasing grazing fees. Environmental groups praised the action which coupled with the presidents proposed Energy tax represented dramatic environmental decisions. A this is a huge turnaround a said Richard Hoppe spokesman for the wilderness society which devotes much of its time to Western lands issues. Gaylord Nelson the groups Counselor added that the subsidy programs have represented Quot corporate welfare pro Grams that a Are degrading our lands and robbing  Rick Fenton governmental affairs specialist for the american mining association reiterated his organizations steadfast opposition to any Royalty fee on minerals on the grounds it would make Many mining operations unprofitable. However depending on How the fee was structured Fenton said his group would be willing to discuss it Quot if that seems like its  Here is How they would be hit the top individual income tax rate now 31 percent would be raised to 36 percent retroactive to Jan. 1. This would affect the 1.2 percent of taxpayers with the highest incomes single people with adjusted Gross income Over about $140,000 and couples above $180,000. The new rate would apply Only to taxable income a after exemptions and deductions Are subtracted a Over $115,000 for singles and $140,000 for couples. The maximum rate on capital gains would remain at 28 percent. A a 10 percent surtax would be imposed on taxable incomes not including any capital gains Over $250,000. About 8s percent of those affected Are millionaires the Treasury department says. If for exam. Be a person with $500,000 income had a $80,000 tax ability he or she would pay an extra $8,000. A All wages of most workers would be subject to the 1.45 percent medicare tax. The tax now applies Only to the first $135,000 of annual wages. A the portion of business meals and entertainment qualifying for a business tax deduction would be Cut to 50 percent from 80 percept. Club dues would no longer qualify for a  fear being hurl by squeeze Washington a senior citizens groups say they want to help Percsi Dent Clinton Cut the deficit but they say his economic plan tries to squeeze too much out of medicare and social Security. Clinton on wednesday proposed to Cut medicare and medicaid payments to doctors and hospitals and to increase monthly premiums for older americans saving up to $63 billion Over five years $10 billion of it from beneficiaries. But he stressed a there will be no new cuts in benefits for  health and human services Secretary Donna e. Shalala said the proposed reductions in payments were maae a with a Scalpel not with a Sledge Hammer and would still allow growth in medicare of More than 10 percent a year. Medicare payroll taxes would be required on All earnings rather than the present $135,000 limit a a measure that would affect Only the wealthiest americans. But a broader Impact would be Felt from taxes to be raised on social Security benefits for retired couples earning More than $32,000 and individuals earning $25,000 a year. Clinton said the Only change in social Security is one previously publicized. A the plan does ask older americans with higher incomes who do not rely solely on social Security to get by to contribute More a he said adding a this plan will not affect the 80 percent of social Security recipients who do not pay taxes on social Security  Martha Welsh of the american association of retired persons said the Burden still would be too heavy on the elderly. A older americans have sacrificed Many times in past years and Are willing to pay their fair share for the Sake of their country a she said. A but to meet this goal the program outlined in the speech needs  a retired couple with Only $40,000 income would face increased Federal taxes of just More than $600, she said. Clinton a proposed increases in the medicare part b Premium would affect a but the lowest income elderly adding $120 a year by 1998, she said