Tax News Archive:

Gore's Tax Plan

Gore has planned to spend $500 billion in tax cuts over the next decade. If his plan were implemented, it would eliminate the debt owed by Americans plus result in a stronger social security and Medicare. With the baby boomers getting older every day and reaching that retirement age probably sometime in the next decade, America has to quickly come to terms with the reality of it. And right now social security and Medicare are bigger issues than wiping out the debt. Gore realizes that just as Bush does.

Gore has outlined his plan as the following:

  • Making the child and dependent care tax refundable for the first time. Increase the amount of credit from 30% to 50%, for families earning up to $60,000, of child care expenses a family can claim
  • Parents who stay home can claim up to $500 tax credit for caring for their young child, up to the age of one
  • Up to 50% tax credit on expenses incurred by parents who have after school care for teenagers 13 to 16 years of age
  • Up to $3000 tax credit for family members who provide care for family members who are ill or disabled at home
  • Increase the earned income tax credit
  • Providing marriage penalty tax relief by increasing the standard deduction to that of a single individual filer for married couples
  • Increase the death tax relief to $5 million, helping to eliminate estate taxes for 90% farmers and 70% small businesses
  • 25% tax credit for premium costs of health insurance purchased by small businesses that decide to join the purchasing coalition
  • 25% refundable tax credit for individuals with no access to job based health coverage
  • Provide tax credits for School Modernization Bonds and Qualified Zone Academy Bonds
  • 28% tax credit and up to $2800 annually in tax relief per family for post secondary education
  • Tax-free tuition savings accounts that are more accessible and transferable
  • Tax credits to employers for courses that prepare Americans for the future and training allowances for individuals in the shape of unemployment insurance
  • Up to $2500 allowed to be contributed to a 401(j) account for life-long learning and education. The money in the account can be used tax-free for this purpose
  • Retirement savings plus accounts should be set up tax-free for people in addition to their IRAs and savings accounts
  • 50% tax credit to employers to cover the administrative costs and retirement education expenses for setting up a qualified pension plan for employees. The small business can’t have more than 100 employees. The expenses are covered for up to $2000 in the first year, $1000 in the second and third year
  • Low income housing tax credit for states that would raise the cap from $1.25 to $1.75 starting in 2001
  • Making the "Brownfields" tax incentive permanent
  • Tax credits for private sector investment in economically distressed communities
  • 50% reduction in capital gains tax for transfer of farms and lands to conservation societies. Tax incentives for reforestation on private lands
  • Tax credits to pay the interest on bonds for investments by state, local, and tribal governments
  • Tax incentives for making homes, cars and trucks more energy efficient
  • Research and experimentation tax credit for companies that have through innovation and perseverance made the economy stronger