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Clinton Offers Tax Cut Plan for Middle Class : Presidency: He calls for a mix of child credits and school-aid deductions but fails to detail the financing.

December 16, 1994|JOHN M. BRODER and JAMES RISEN | TIMES STAFF WRITERS

If enacted, he said, the tax cut would "dramatically" reverse what he called a 40-year trend in which the federal government "has spent more and more of the income of working American families."

Gramm said dismissively of Clinton: "I am glad that the President is beginning to at least hum along as we sing our song of less government and more freedom. . . . (But) the President is more than a day late and more than a dollar short."

Times staff writer Edwin Chen contributed to this story.

* CRAFTING AN IMAGE: Clinton casts himself as backer of 'forgotten middle class.' A12

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The President's Package

In his nationally televised address, President Clinton proposed a $60-billion mix of new tax credits and deductions, mainly for families with children and college students. Some highlights:

EDUCATION: Allows parents earning up to $100,000 annually to deduct $10,000 a year in tuition for college or other post-high school education.

CHILD CREDIT: Provides $500-per-child tax credit for all children age 13 in families with an adjusted gross income up to $60,000 a year.

IRA: Allows individuals earning up to $100,000 annually to claim up to a $2,000 deduction for putting money into individual retirement accounts.

PAYING FOR IT: Calls for $24 billion from cuts in federal agencies, $52 billion from extending a freeze on all federal discretionary spending in 1999 and 2000. Extra $16 billion goes toward deficit reduction.

Replay Clinton's Speech

* To hear President Clinton's speech to the nation Thursday outlining his goals for the next two years, call TimesLine at 808-8463 and enter category *1850

Details on Times electronic services, B4

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