CHANGES BENEFIT LOWER-INCOME TAXPAYERS

The next time you hear Republicans being blamed for favoring the rich whenever changes are made in the way we pay taxes, just remember a couple of things:

-- As the result of the changes that go into effect with 1998 tax returns, some 48 million Americans required to file tax returns -- approximately a third of all U.S. taxpayers -- will pay nothing.

That's right. Zero.

This is because they will owe no federal income taxes mainly as a result of a new child tax credit. Under this credit, lower-income parents can subtract $400 in taxes owed for each child under the age of 17, including stepchildren and foster children.

Not only will some taxpayers have their tax bills reduced to zero, some families with three are more children will actually get a refund -- that's right, money from the government -- because of the child tax credit.

In other words, some taxpayers with children will get back money they never paid the IRS through payroll deductions from their paychecks.

Americans with higher incomes won't benefit much from the child tax credit, because the credit drops -- and finally disappears -- as taxable income increases.

Which leads to something else you should remember:

-- Americans who have higher taxable incomes pay most of the taxes -- and that burden is growing.

Some 62 percent of the 1998 tax burden will be paid by Americans with incomes above $100,000 a year, according tot he Joint Committee on Taxation. That tax load is an increase from 56 percent the year before.

Of course, these changes do not eliminate all taxes for Americans with lower incomes. They still must pay their share -- matched by employers -- of the Social Security tax as well as the Medicare tax. And they may still be subject to state income taxes in states, like Missouri, that collect income taxes.

But the effect of the child tax credit alone is a broad base for federal tax relief to millions of Americans.

But wait. There's more good news.

In 1999, the child tax credit will go up to $500. This means even more lower-income Americans won't owe any taxes or will be entitled to a refund at the end of the year.

Why should Republicans get the credit for all this? Because the Republicans were in control of Congress when these goodies were adopted. And everything that happens in Congress any more is a matter of partisan politics. You can bet your last refund dollar that even the Democrats who voted for the child tax credit thought they had a better plan.

Forty-eight million taxpayers, however, will be pleased with the changes.