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Show Moss Supports A $200 Tax Credit A bill to give taxpayers a break at income tax time is being co -sponsored by Utah Senator Frank E. (Ted) Moss. The legislation (S. 2906) would give a taxpayer the option of using a $200 credit on the Federal Income Tax in lieu of his $750 personal exemtion. "For people with low or average incomes, the tax credit is usually significatly better than a deduction," Moss explains. A tax credit is subtracted from the amount of money owed by the taxpayer, while a deduction is only subtracted sub-tracted from his gross income in-come figure upon which his tax is computed. "A rich man might owe $10,000 to the IRS," Moss explained. "With a tax credit cred-it of $200 he would still owe $9,800. But a man who owes $400 in taxes could use the $200 credit and cut his payment pay-ment in half. "Besides alleviating some of the harsh effects of Inflation, the tax credit will . also poryide some much i (needed . stimulation to an economy; that is sliding into in-to a recession, by providing provid-ing tax relief for the hard pressed American consumer," con-sumer," said Moss. He explained that a married mar-ried couple earning $12,500 a year with two dependents would now pay $1,309 in federal taxes. Using the $200 tax credit proposed in S. 2906, they would owe $1,158, a savings of $151. A couple in the same circumstances cir-cumstances earning$20,000 a year save only$20byusing the tax credit. The legislation is currently cur-rently being considered by the Senate Finance Committee. |