February 14, 2001

CONGRESSWOMAN BARBARA LEE PROMOTES PROGRESSIVE CAUCUS TAX PLAN

Washington, DC - Progressive Caucus Vice Chair Congresswoman Barbara Lee (D-CA) today called on Congress to enact the Caucus' American People's Dividend plan, which will provide a $300 per person refundable tax rebate to every American.

The Progressive Caucus plan would help low-income families, as well as African American and Hispanic families, much more
than President Bush's proposal. Many families with children - and especially minority families - would receive no tax credit at all under President Bush's tax plan.

"President Bush states that the average American family would receive $1,600 under this tax plan. But while some wealthy
families will receive tens of thousands of dollars of tax relief, others will receive absolutely nothing," said Lee.

Many minority families will receive a disproportionately small amount of tax relief in the Bush tax plan. This is primarily because they have no income tax liability before the Earned Income Tax Credit is computed. However, these families pay many other taxes, such as payroll taxes, and deserve the same tax benefits as every other family.

"An estimated 12 million low- and middle-income families with children - about 31% of all families - will get no relief whatsoever from the Bush tax plan," said Lee. "Even more worrisome is that fact that more than half of African American and Hispanic children live in families that will get absolutely nothing from the Bush plan. In contrast, all of them would receive $300 per person from the Progressive Caucus American People's Dividend."

Rep. Lee pledged to work to include the American People's Dividend program in any tax legislation that moves through Congress this year.

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