Kerry Pledges to Strengthen and Expand the Middle Class during Michigan Campaign Stop

6/17/2004

From: Allison Dobson of John Kerry for President, 202-464-2800, Web: http://www.johnkerry.com

DETROIT, June 17 -- Continuing his focus on building a stronger economy for America's families, Democratic Presidential candidate John Kerry Thursday met with leaders of the Michigan AFL-CIO to discuss his plan to strengthen and expand the middle class.

With families across the country struggling to keep up with rising costs, lower income and mounting debt, Kerry said we can do better, and he laid out his comprehensive plan to create new, high-wage jobs and provide families with relief from rising every day costs and mounting debt.

"I believe in building up our great middle class - respecting their work, honoring their values and lifting them up in the toughest of times," Kerry said. "It's time to remember a basic truth: a stronger America begins right here at home."

The Bush economy has failed to lift up Michigan families. Today, they are working harder, earning less and paying more for every day costs like health care, college education and gasoline and energy. Squeezed by the economy, middle-class families are accumulating record debt and filing for bankruptcy at historic levels - one Michigan family every 8 minutes in 2003.

"Twenty years ago, middle-class families with one parent working used to be able to buy a home and pay for college," Kerry said. "But today, two incomes barely cover the basics. And, as you know too well, if anything at all goes wrong - an illness or a temporary layoff - most families can't pay the bills and they risk losing everything they've built and saved for. That's wrong. And we're going to change it."

As President, Kerry will strengthen our economy with a plan to ease the pressures on middle class families.

His plan will save families up to $1,000 on health care and make college more affordable with new tax credits. He will pursue a comprehensive strategy to bring down gas prices and help families balance the needs of work and family with new efforts to expand high-quality after school programs.

Kerry will also create 10 million new, high-paying jobs - 342,000 in Michigan. He will cut taxes for 99 percent of businesses and end tax breaks for companies that move jobs overseas. He will also invest in technology and worker training so that American workers are prepared for the jobs of the future.

"The middle class is the engine that drives America's economy, and for decades, it has been powered by families working hard, investing in the future and doing the right thing," Kerry said. "When these families do well, our country does well. When they have the chance to save and get ahead, our country and our economy grow stronger. I'm running for President because I want an economy that strengthens and expands the middle class, not one that squeezes it."

The members of the Michigan AFL-CIO Executive Board Kerry addressed represent nearly 1 million working men and women throughout the state.

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A STRONGER ECONOMY FOR AMERICA'S FAMILIES

John Kerry knows we can do better than the current economy and will raise America's sights with a comprehensive plan to build a stronger economy. His plan will not only create new high-wage jobs here at home, but it will also provide relief for working families by making college affordable for all Americans, lowering health care and energy costs and helping families save.

The Bush Economy and Michigan Families:

Weak Jobs Record. The economy is not creating the jobs President Bush pledged, and the jobs being created pay less and offer fewer benefits than the jobs lost. Average wages for growing industries pay $12,920 less than in contracting industries. (EPI, "Average Wages in Growing and Contracting Industries, End of Recession Through November 2003)

Middle Class Squeeze. Even among those who have jobs, incomes are down while costs for health care, college, energy and child care are up. $2,795 increase in family health care premiums in the last 3 years - up to a total $9,612. (2000 MEPS Data from the Agency for Healthcare Quality Research projected forward using KFF National Premium Increase) $1,422 increase in college tuition since Bush took office. (American Association of State Colleges and Universities; National Association of State Universities and Land Grant Colleges; Based on College Board Tuition Increase) $875 more per household with teenagers for gasoline since Bush took office. (Department of Energy, Household Vehicles Energy Consumption 1994, Table 5.2, August 1997)

Record Debt: Lower wages and rising costs together have driven up debt and family bankruptcy to record levels. 62,070 households filed for bankruptcy in 2003, a 73 percent increase from 2000. (US Courts, Administrative Office, Bankruptcy Statistics) - 1 bankruptcy every 8 minutes in 2003. (US Courts, Administrative Office, Bankruptcy Statistics)

JOHN KERRY'S PLAN TO STRENGTHEN THE MIDDLE CLASS

CREATE GOOD JOBS:

Jumpstart Job Growth. Kerry's "New Jobs Tax Credit" will provide a payroll tax holiday to encourage hiring by manufacturers and other businesses affected by outsourcing, as well as small businesses. And Kerry will enforce our trade agreements and trade laws to ensure that our partners are playing by the rules.

Make America More Competitive. John Kerry will end tax breaks for companies that move jobs overseas and cut taxes for 99 percent of corporations that keep jobs in America. He will cut the deficit in half in four years, provide health care relief by cutting premiums by up to $1,000 and move towards energy independence to cut energy costs for businesses and create the energy-efficient jobs of the future.

Invest in the Jobs of the Future. John Kerry will unleash innovation in broadband, energy and small- and medium-sized businesses. He will also work to secure universal access to college and expand job training.

EASE THE MIDDLE CLASS SQUEEZE:

Cut Taxes to Lower Education Costs. John Kerry will make college affordable again by offering a new College Opportunity Tax Credit-a tax credit worth over 60 percent of $4000 for each of four years of college.

Save Families Up to $1000 on Health Care. Health care costs are spiraling out of control, burdening families and undermining our economy. John Kerry's plan will control costs by giving relief to businesses and passing savings on to workers. This will save employees up to $1,000 in premiums a year. And Kerry will make prescription drugs more affordable through a series of reforms, including allowing reimportation.

Bring Down Gas Prices. John Kerry is offering a comprehensive strategy to lessen the impact that high gas prices are having on American families. He will pressure OPEC to start providing more oil, stop diverting oil to the Strategic Petroleum Reserve until gas prices get back to normal and invest in a real energy plan that reduces our dependence on Middle East oil.

Stand Up Against Abusive Financial Institutions. At a time when families are facing record debt and record bankruptcy, some credit card companies, mortgage lenders, and other financial institutions take advantage with deceptive practices and unfair fees. John Kerry will stand up for these families with strong consumer protections.

Help Families Struggling with the High Costs of Raising Children. John Kerry will relieve the financial and time squeeze on middle class families with new efforts to expand high-quality after school programs and make child care more affordable.

Paid for by John Kerry for President, Inc.