Al Gore Will Build a Stronger, Fairer More Prosperous America

At the first presidential debate tonight, Al Gore will lay out his vision for America and detail how he will make the responsible choices for hard-working families across the country. Gore's plans ensure that our current prosperity and surpluses benefit, not just the few, but all families.

The following is an outline of Gore's plans:

FISCAL RESPONSIBILITY AND MIDDLE-CLASS TAX CUTS

• Paying Down the Debt by 2012. Al Gore and Joe Lieberman have a detailed plan to pay off America's $3.4 trillion debt by 2012. This plan will eliminate what is, in effect, the third largest government program -- interest on the debt. By spending $2 on debt reduction for every $1 spent on tax cuts or investments, the plan creates $3 trillion of debt reduction over the next decade and eliminates the debt entirely by 2012. For families, this means lower interest rates and savings on everything from home mortgages to student loans. For the economy, it means stronger investment, faster growth, and rising incomes for all Americans.

• Balanced Budgets Every Year; Creation of a $300 Billion Surplus Reserve Fund. Al Gore and Joe Lieberman will balance the budget each and every year without using any surpluses from Social Security and Medicare. In fact, they "underspend" the surplus by $300 billion over the next ten years -- setting aside $1 out of every $6 as a cushion. If the economy grows as expected, this will contribute to paying down the debt. But if it does not or America faces unexpected crises, then this added cushion will make it possible to balance the budget without being forced to choose between going back into deficit, raising taxes, or slashing essential investments in education and other priorities.

• Fiscally Responsible Tax Cuts for Middle-Class Families. Al Gore and Joe Lieberman have proposed nearly $500 billion in fiscally responsible tax cuts to give a break to the families who need it most. With these tax cuts, America will meet the Gore-Lieberman goal that by 2002 typical middle-class families will pay a lower share of their income in federal income taxes than at any time in the last 50 years. The Gore-Lieberman tax cuts include the following:
  • Eliminating the marriage penalty for millions of working families.

  • Making most college tuition tax deductible up to $10,000 per year.

  • Increasing the tax credit for childcare and making it refundable for moderate-income families.

  • Creating a new tax credit to help stay-at-home moms pay childcare expenses.

  • Providing a tax credit to help families pay long-term care expenses.

  • Expanding the Earned Income Tax Credit to better reward work and family.

  • Eliminating the estate tax for most small businesses and family farms.

  • Creating Retirement Savings Plus, new tax deductions and tax credits to help families save for retirement.

  IMPORTANT INVESTMENTS IN EDUCATION AND HEALTH CARE

• A Bold Initiative to Revolutionize Public Education and Expand Lifelong Learning for All Americans. Al Gore and Joe Lieberman understand that in the New Economy, learning for a lifetime is key. A Gore-Lieberman Administration will establish high expectations for every child and will hold schools and students accountable with tough required testing for students and teachers, with strong consequences for failure and strong incentives for success. They will ensure there is a qualified teacher in every classroom by 2004 by implementing peer review, rigorous testing and tough teacher accountability. But accountability alone is not enough, and Al Gore and Joe Lieberman will make sure that every child can learn in a high-quality classroom environment. They will finish hiring 100,000 new teachers to reduce class size; help local school districts build new schools and modernize classrooms; and turn around failing schools. In order to make education a lifelong pursuit, a Gore-Lieberman Administration will fight for universal preschool, make most college tuition tax deductible and create important incentives to improve and expand job-training opportunities.

• Access to Health Care, Starting with All Children. Al Gore and Joe Lieberman will ensure that every child has access to affordable health insurance by 2005 by expanding the Children's Health Insurance Program. They will expand health care coverage for millions of working parents whose children are eligible or enrolled in Medicaid or CHIP, and they will provide a 25 percent tax credit for small businesses that join a purchasing coalition and for individuals who lack employer provided coverage. For the fastest growing group of the uninsured, Americans between 55 and 65, the Gore-Lieberman plan offers them a 25 percent tax credit so they can buy into Medicare.

  STRENGTHENING AND IMPROVING MEDICARE AND SOCIAL SECURITY

• Protecting Social Security and Medicare Surpluses for Solvency and Debt Reduction. With the aging of the baby boom, Al Gore and Joe Lieberman believe that we should take advantage of today's favorable circumstances to save for the future and extend the lives of Social Security and Medicare. That is why they will put the Social Security and Medicare surpluses in a lockbox so they cannot be raided by politicians. Al Gore will veto any legislation that spends Social Security or Medicare surpluses on anything other than strengthening these programs. By saving Social Security and Medicare surpluses to pay down the debt, the Gore-Lieberman plan will produce substantial interest savings, which will be used to extend the life of Social Security to at least 2054 and the life of Medicare to at least 2030 -- the longest period of solvency in the life of the Medicare program.

• Saving Social Security and Helping Families to Save for Retirement. In addition to putting Social Security in an off-budget lockbox and using the interest savings to extend its solvency to 2054, Al Gore and Joe Lieberman will establish "Retirement Savings Plus" accounts which will provide generous tax deductions and tax credits to help families save for retirement on top of the unshakeable foundation of Social Security. A couple that contributes just half of the annual maximum -- just $10 a week for a couple making $25,000 -- would retire with a nest egg of $200,000 (adjusted for inflation). This is enough to purchase an annuity that would nearly double the average Social Security benefit, in addition to Social Security, not instead of Social Security.

• A Prescription Drug Benefit for All Seniors Under Medicare. Al Gore and Joe Lieberman will improve Medicare by adding a much-needed prescription drug benefit so that no senior has to choose between the medicines they need and food or rent. The benefit is entirely voluntary, and it covers all seniors under Medicare. The Gore-Lieberman plan would cover half the cost of prescription drugs up to a $5,000 annual limit when fully implemented, and it includes catastrophic protections that ensure that no senior will have to pay more than $4000 in out-of-pocket drug costs. The plan guarantees coverage for all medically necessary drugs -- putting seniors and the doctors in charge of their health care.

• A Plan to Protect, Improve, and Modernize Medicare. In addition to putting Medicare surpluses in an ironclad lockbox, Al Gore will also improve Medicare by making sure Medicare covers state-of-the-art preventative care and by eliminating co-payments and deductibles for many potentially life-saving screening tests. The Gore-Lieberman plan will modernize Medicare by giving seniors more choices. Under their plan, seniors, not HMOs, will make and benefit from choices about their health coverage. There will be stiff penalties for HMOs that drop seniors from coverage, and seniors will be able to go to their local pharmacy and get the drugs their doctors prescribe.
    (10/03/00)