15 March 2001, 21:57  US HOUSE REPS INTRODUCE WAVE OF TAX CUT BILLS IN OPEN SEASON

WASHINGTON (MktNews) - Eager House lawmakers introduced a flurry of new tax cut bills this week, but at midday Thursday key players were still mum about exactly which ingredients will mix in the next tax relief measure. Following last week's speedy approval in the House of a $958 billion, 10-year bill to cut individual income tax rates, the tax-writing Ways and Means Committee is to hold a hearing next Wednesday to consider other major elements of President Bush's $1.6 trillion tax cut proposal. Particular emphasis in the hearing will be paid to estate tax repeal, reductions in the so-called marriage penalty, and a doubling of the per-child tax credit, according to a statement from the committee. Ways and Means Chairman Bill Thomas has so far not indicated what will comprise his next tax bill, though he may reveal more details later Thursday. Some of Thomas' colleagues have a few suggestions. House Majority Leader Richard Armey wants swift action on measures aimed at increasing savings and investment and thereby boosting the flagging economy. He'd like to see retirement savings expansion and capital gains tax cuts, and he insists that tax relief should total more than $1.6 trillion over 10 years. Armey has co-sponsored a $2.1 trillion tax cut bill penned by GOP backbencher Pat Toomey that accelerates and expands Bush's proposal. Toomey's bill would cut capital gains tax rates by 25% retroactively to January 2001, repeal the so-called marriage penalty tax, phase out the alternative minimum tax, repeal estate taxes by 2009, and reduce marginal rates further than Bush's proposal would. How this bill might interact with the already-passed marginal rate cut bill is unclear, but House rules allow consideration of duplicative measures and lawmakers are generally not opposed to voting on them. Also this week, GOP Rep. Rob Portman and Democratic Rep. Ben Cardin reintroduced their $52 billion, 10-year bill to increase 401(k) and IRA contributions and make retirement plans more portable. The measure passed the House in similar form last year with overwhelming bipartisan support. Another bipartisan duo, GOP Rep. Nancy Johnson and Democrat Charlie Rangel, this week reintroduced their $1.75 billion, five-year school construction bond bill, which would provide federal tax credits to pay the interest cost on $25.2 billion of school modernization bonds. Meanwhile, House budgeteers may pave the way for tax cuts of more than $1.6 trillion through their forthcoming budget blueprint. "The number's going to be 1.6 (trillion dollars), and we in the House view that as a floor. We don't view that as a ceiling," House Budget Committee Chairman Jim Nussle said Wednesday. His committee will mark up the budget resolution Wednesday of next week, and House leaders hope to have it on the chamber floor by early April. The budget resolution could allow for greater tax relief if the Congressional Budget Office upwardly revises its next budget surplus projections in July. Language in the budget document could provide for an increased tax cut number contingent on any increase in the non-Social Security surplus projections the CBO next reports. "There might be other resources that might become available," Nussle said. Of course, there's also a chance that the CBO's next projections would be downwardly revised, particularly given current rocky economic and market conditions, but Republican lawmakers are for now largely ignoring that possibility. "I don't think there's a correction that could occur in the (federal) revenue stream quite that fast," Nussle said

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