CAROL LIN, CNN ANCHOR: According to President Clinton, what's in the best interest of low-income workers may be a tax break. He plans on making that proposal and announce it this afternoon. Kathleen Koch is live at the White House with the very latest on this. Hi, Kathleen.</s>KATHLEEN KOCH, CNN CORRESPONDENT: Hi, Carol. The president, this afternoon, plans to give the nation basically a preview of one of the many tax cuts that he will announce in his January 27th State of the Union speech. The president returned to Washington, late last night, after a trip to the Grand Canyon to announce a major environmental initiative, and a brief stop in Houston, Texas, to raise money for a Democratic congresswoman and that state's Democratic Party. This afternoon, at a speech before the Democratic Leadership Council here in Washington, the president will propose expanding the earned income tax credit program by $21 billion. That's a program that currently helps nearly 20 million low-income working families in the United States by giving them tax credits to offset the payroll taxes that they contribute; that, of course, as an incentive to keep them off of welfare. The proposed 10-year expansion of the program would boost the credit for working families with three or more children by $500; it would also raise the earnings ceiling for married couples and cut the rate at which the credits are phased out when wages reach a maximum threshold. The White House predicts that this could help some 6.4 million Americans. It's also believed that it could help Vice President Al Gore's bid for the White House by giving him yet another initiative to campaign on. Former Senator Bill Bradley has already announced his own expansion of these tax credits for low-wage earners, calling it part of what he calls a "wholesale rescue effort for the poor." Now, President Clinton's plan, though, of course, does need congressional approval. Reporting live at the White House, I'm Kathleen Koch -- Carol.</s>LIN: Thank you, Kathleen.
President Clinton to Announce Tax Break for Low-Income Workers