Politics notebook

Lower taxes on the middle class, Lieberman proposes

MANCHESTER, N.H. - Democratic presidential candidate Sen. Joseph Lieberman proposed an overhaul of the federal tax code Monday that would lower tax rates on middle-class families while raising taxes, sometimes substantially, on wealthier Americans.

Lieberman said his plan would "restore integrity and fairness" to the tax code by shifting more of the burden to wealthy individuals and corporations.

The plan calls for lower tax rates on people earning less than about $70,000 and families earning less than $115,000. It would restore the tax on dividends and re-establish certain estate taxes, negating two tax changes that have been central to the Bush administration's economic plan.

In addition to raising rates on the higher-income Americans, the Lieberman plan would impose a 5 percent tax surcharge on individuals and families with incomes of more than $250,000 a year. The plan also would close some loopholes in the corporate tax code, including the use of offshore tax havens by American companies. Together, the measures would generate $900-million in government revenues over 10 years, Lieberman said.

"When George Bush tries to say, "You Democrats are all just raising taxes,' we're going to be able to say "No way,' " Lieberman said. "We're going to make taxes fairer for all. We are going to fix the mess George Bush has made of our tax system and federal budget."

SUNNY ISLES BEACH - Democratic presidential hopeful Wesley Clark met with about 300 supporters Monday, his second appearance in South Florida since entering the race.

"Don't ever, ever let any administration tell you that in a time of peace or in a time of war, that if you disagree with it, it's unpatriotic. That's not so," Clark said to cheers.

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