Senator Tom Harkin says President Bush’s economic stimulus package is “hair-brained.” He says the proposal does more of the same, more tax cuts with hopes the money trickles down and helps everybody. Harkin says it’s time to change course. Harkin proposes a tax break for low-income Americans and more government spending on construction projects to create more jobs and get people back to work. Harkin proposes giving Americans who work but don’t earn enough to pay income taxes a break. He calls it a payroll tax holiday — a temporary suspension of the Social Security taxes the low-income pay. He says many people don’t pay income taxes, but they pay the full burden of payroll taxes, and he says a payroll tax holiday may stimulate the economy.In other words, the federal government would put money into the Social Security Trust Fund to make-up for those unpaid payroll taxes. Harkin also proposes direct federal payments to cash-strapped states. He says states will have to make huge cuts to get rid of deficits and he says the federal government should provide relief to the states.Harkin proposes a series of federal budget cuts, too.
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