Sen. John Edwards, campaigning for the Democratic nomination for president, said Monday his targeted tax-cut proposal would create 5 million new jobs in his first two years in office and end the “two Americas” that President Bush has created.
“One America does the work, while another America reaps the reward,” Edwards said in a speech detailing his efforts to bolster quality of life for middle-class Americans. “One America pays the taxes, while another America gets the tax breaks.”
Much of the package Edwards spelled out Monday had been made public earlier, but the North Carolina senator used the occasion to tie together his proposals and tout the benefit he sees them having on the economy.
Edwards’ proposal called for:
- Tax breaks for companies that agree to keep their operations in the country, a move he said would create 52,000 jobs in Iowa alone.
- Targeted tax cuts for middle-class families, which he said would put money in the pockets of 1 million Iowans.
- Creating a first-time homeowner tax credit, which would help 70,000 Iowa families move into a house.
- Offering 120,000 Iowa families a $2,500 tax credit for each new child born, making it easier for at least one parent to stay at home with the infant.
- Offering retirement savings incentives to 980,000 Iowans, offering tax incentives for setting money aside. Another 260,000 families would benefit for a lowered capital gains tax, he said.
Edwards has called for a repeal of the portions of the tax cut Bush pushed through Congress that benefited the wealthiest taxpayers. He has, however, differed with some of his Democratic rivals in arguing to keep in place the portions of the tax cut that aided middle-class taxpayers.
“We know that President Bush’s tax cuts did not do enough for working people,” Edwards said. “But our answer cannot be to raise taxes on those who make the least. We cannot say to the average family of four in Iowa: your taxes are going up by more than $1,700.”
Edwards argues that the $1,700 figure is the amount that middle-class families would have to pay in higher taxes if the middle-class portions of the cut are rescinded.
Most polls have shown Howard Dean and Dick Gephardt bunched together tightly atop the field of candidates for Iowa’s leadoff caucuses Jan. 19, with Massachusetts Sen. John Kerry in third place. Edwards has picked up the pace of his campaign in Iowa, hoping to slip past Kerry and get some attention by doing better than expected in a state that’s outside his native South.