DO YOU QUALIFY?

Who would qualify for some of the president’s proposed tax changes:

CHILD TAX CREDIT

For each child under 13. Worth $300 a year in 1997-99 and $500 in 2000. It would be phased out for taxpayers with adjusted gross income between $60,000 and $75,000.

TAX BREAK ON HOME SALES

Married taxpayers filing jointly could exclude up to $500,000 of capital gains on the sale of a principal residence. Single filers could exclude $250,000. This generally could be done every two years.

COLLEGE TAX CREDIT

First year: Families would get a $1,500 tax credit for each student in post-secondary education.

Second year: Familes would get a $1,500 tax credit if the student maintains at least a B average and is not convicted of a drug crime. Taxpayers with incomes over $100,000 would not quality at all.

COLLEGE TAX DEDUCTION

As an alternative to the tax credit, or when the credit expires, families could deduct tuition and fees for post-secondary education or job training. Each family could qualify for only one deduction each year. The maximum deduction would start at $5,000, rising to $10,000 in 1999.

EXPANDED IRAs

Early withdrawal from individual retirement accounts would be exempted from the usual 10% tax if the money is used to buy a first home, for higher education or for living costs if unemployed.

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Trends

Budget spending per major categories.

DEFENSE, FOREIGN AID

‘94: 19.3%

‘98*: 15.4%

‘02**: 14.6%

ENTITLEMENTS

‘94: 51.4%

‘98*: 56.0%

‘02**: 57.1%

OTHER DOMESTIC

‘94: 15.4%

‘98*: 13.8%

‘02**: 15.8%

INTEREST ON DEBT

‘94: 13.9%

‘98*: 14.8%

‘02**: 12.7%

* requested

** projected

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Ups and downs

Spending in the Clinton budget, in billions of dollars.

WHAT’S UP

*--*

1997 1998 Defense $254.3 $247.5 Legislative $2.5 $2.8 Judiciary $3.6 $3.7 President’s Funds $9.7 $10.2 Agriculture $57.0 $58.8 Commerce $3.8 4.1 Civil Defense $33.9 $34.8 Education $28.3 $32.1 Health/Human Srv $351.1 $376.1 Housing-UrbanDev $29.9 $32.2 Justice $14.5 $17.4 Labor $32.9 $35.6 Transportation $38.4 $38.5 Treasury $380.6 $390.4 Veterans Affairs $39.6 $40.9 EPA $6.3 $6.7 Social Sec. Admin $395.9 $413.0 Office Personnel Mgmt. $44.8 $46.5

*--*

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WHAT’S DOWN

*--*

1997 1998 Energy $15.4 $14.6 Interior $7.4 $7.1 NASA $13.7 $13.6

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NO CHANGE

*--*

1997 1998 President’s Office $0.2 $0.2 State $5.5 $5.5

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Source: Office of Management and Budget