SELECTED 1992 TAX PROPOSALS
$300 non-refundable tax credit for children 18 and under; all individuals would be eligible for fully deductible $2,000 IRA, indexed for inflation, with penalty-free withdrawals for first-time home purchases, education and medical expenses.</br></br>Refundable income tax credit of 20 percent of Social Security and Medicare payroll taxes paid by employees, capped at $200 for individuals and $400 for joint filers, and lasting for two years.</br></br>Finance mechanism: Create a permanent fourth income tax bracket of 35 percent rate for individuals with income over $85,000 or joint filers over $145,000; 10 percent surtax on taxable income over $1 million.</br></br>Replace personal exemption with $800 refundable tax credit for each child up to age 18; expand earned income tax credit.</br></br>Finance mechanism: Create new top 36 percent income tax bracket and impose 15 percent surcharge on those earning more than $200,000.