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Carries $2.3 Billion
A Tax Cut
rice ag In
pay raise was
slam dunked nationwide with great fanfare,
iel R trl k
and the slightly less generous one enacted
on the first day
Total Outlays vs. Legislative Outlays
of the second session a bill to cut Social
Percentage Change FY1.987 - 1.991.
Security contribution rates and re~rn
the system to pay-as-you-go fmancmg.
I introduced on January
23, 1990 - would strengthen the Social Secu-
rity system, restore honesty and integrity to
our federal finances, and provide a fair tax cut
to 132 million Social Security taxpayers.
The Social Security tax rate increased on
January 1 from 6.06 percent for employees
and employers each to 6.2 percent - exclud-
ing the 1.45 percent rate for Medicare. The bill
would repeal this rate increase retroactively,
further cut the rate effective January 1, 1991,
to 5.1 percent, and schedule future tax rate
1.987 1.988 1.989 1.990 1.991.
increases starting in 2012.
This would be a $62 billion tax cut for
1990. FY 1990 and 1991 are estimate..
working people over two years. For a single
raise is a drop in the bucket compared to the
(an estimated $54,300), the tax cut savings
$2.3 billion taxpayers will pay to fund the op-
would be about $600 in that year alone.
erations of the nation's legislative body dur-
Savings in future years would be even greater.
. I 11111111111""
ing fIScal year 1990.
At the same time, future Social Security
Tax F 0 U n d a t ion
on the legi