(CNSNews.com) - Texas Republican Governor George W Bush Wednesday unveiled what his campaign calls a "bold approach to tax cuts," one that focuses on raising the standard of living to lower income families while also relieving the tax burden on those who already pay the heaviest proportion of taxes - the wealthy.
Bush's proposed $483 billion tax cut over five years, is based on conservative fiscal assumptions and estimates, according to campaign aides, while leaving Social Security funds untouched. Bush also plans to avoid spending $100 billion of what his economic advisors anticipate will be a five-year surplus of $586 billion.
"It is not just the amount of taxes that matters, it's also what the economists call a taxpayer's marginal rate - the taxes we pay on every extra dollar we earn," Bush told the luncheon crowd at the Greater Des Moines Chamber of Commerce. "That rate determines the incentives to work."
Advisors to Bush, including economic professors and former White House officials, contend that their plan allows "one in five taxpaying families with children" or six million families to eventually pay no income tax at all.
Under Bush's proposal, a family of four earning $35,000 a year will receive a 100 percent income tax cut; a family of four earning $50,000 a year will receive a 50 percent tax cut and a family of four earning $75,000 a year will receive a 25 percent income tax cut.
"It reserves all the Social Security surplus for Social Security itself. None of it will be used either for new spending or tax reductions," Bush said. "My plan balances the budget. It funds needed priorities, including defense and education. It reduces the national debt. And it ensures that the excess - the rest of the surplus - is returned to the American people, who earned it and deserve it."
Bush's plan focuses on cutting marginal tax rates, in an attempt to help people raise their standard of living. Under his proposal it would replace the current five-rate tax structure of 15, 28, 31, 36 and 39.6 percent with four lower rates of 10, 15, 25 and 33 percent.
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