Published Wednesday, February 5, 2003
at the unemployed
Herald Staff Writer
U.S. Rep. Phil English is trying to capitalize on President Bush's proposed tax breaks and economic stimulus plan by introducing tax breaks of his own.
English, of Erie, R-3rd District, is trying to garner support in Congress for his plan to repeal the federal tax on federal unemployment benefits.
"My message is a simple one," English said at a news conference Monday in Hermitage. "This plan is tax relief for working families."
Money received from unemployment benefits is taxed as regular income, English said, a practice he thinks is unfair.
Calling the unemployment benefit tax the "kick 'em when they're down" tax, English said his proposal is getting its second chance on Capitol Hill.
English said he tried to introduce the legislation last year, but Democrats on the Ways and Means Committee, which has jurisdiction over Social Security programs, defeated the measure.
"They called it 'a tax break for the rich,' '' English said. "I don't think that argument will hold much water with anyone today."
English said he doubted the measure would ever stand as an independent bill and hoped to attach it to President Bush's $2.23 billion economic stimulus plan, which includes accelerated tax cuts and decreases in spending to bolster the economy.
English said he has paired up with liberal representative Bobby L. Rush to garner support for the measure.
"It's going to be a bitter fight," English said. "There are some who doubt the need for an economic stimulus package and say we don't tax relief to get the economy in a growth pattern again."
A report by the Center for Workforce Information and Analysis pinpoints the Mercer County jobless rate at 4.8 percent, or 2,700 people.
According to Gary Dalessandro, an accountant with Jazwinski Financial Services, the federal government is the only institution that is able to tax unemployment benefits. The government taxes jobless benefits as normal income.
According to the Web site of the state Department of Labor and Industry, people with incomes of $12,000 can expect to get $3,172 over 26 weeks. On their tax bills, Dalessandro said, they can expect to pay 10 percent of the first $6.000 and 15 percent of the second $6,000 they earn.
You can e-mail Herald Staff Writer Amanda Smith-Teutsch at: ateutsch@sharonherald.com