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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