Third Way Tax Relief Package Introduced in Senate
Washington, DC – Senator Charles Schumer (D-NY) and six freshmen Senators unveiled tax cut legislation today modeled on a proposal developed by the center-left think tank Third Way. The package includes five major elements, four of which were part of a model tax relief package Third Way developed last year – a generous college tuition tax break, an expansion of the child tax credit for parents with young children, a doubling of the tax break for child care expenses, and a new elder care tax cut to help families care for aging parents. The package also included modifications to the alternative minimum tax.
“This is important tax relief that helps families achieve what they want from life. It is aimed squarely at the middle class, who have been ignored by most government programs and get almost no help from the tax code,” said Anne Kim, Director of Third Way’s Middle Class project.
Joining Schumer at the press conference were freshman Senators Amy Klobuchar (D-MN), Claire McCaskill (D-MO), Bob Casey (D-PA), Jon Tester (D-MT), Sherrod Brown (D-OH), and Sheldon Whitehouse (D-RI).
“This is a signal that the new Congress is focused on helping the middle class prosper in an economy where the rules for success have been rewritten due to global and technological change,” said Jim Kessler, Third Way’s Vice President for Policy. “Families know that a college degree is essential for their kids, but the rising costs and lack of government help fills them with angst. They also know that in families where both parents work, finding the time and resources to care for children and elderly parents is their number one challenge.”
Kim acknowledged that there would be costs to the plan, but noted that “there is plenty of fat in the tax code to pay for this. If you believe that the middle class is the engine of our economy, then this tax cut package ought to be at the top of the priority list.”
Third Way this week released a major new study on the middle class. That paper is entitled The New Rules Economy: A Policy Framework for the 21st Century.
Contact: Matt Bennett (202) 775-3768 x212