| Vol. 17 No. 21 | Final Edition | |
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May 2, 2001
Tax Cut Compromise!
Biggest since President Reagan's 1981 tax relief!
By Edward Davidian, Satff WriterCLOVIS - - President George W. Bush has obtained the largest tax reduction in a generation. The historic $1.35-trillion, 11 year tax cut, was agreed to by the Congress yesterday.
The compromise on the historic legislation provides for $1.6 trillion in tax relief over 10 years, starting next year. The compromise is a welcome contrast from the eight years of Clinton refusal of numerous GOP tax cut bills. President Bush said, "This is a meaningful, significant, sweeping tax relief, the most tax relief in a generation."
The compromise is expected to set the stage for further needed legislation on another part of the budget, total government spending. Sources said late last night negotiators were getting close to agreement on setting growth near 5 percent.
Bush's tax and spending targets limits appear to be part of an annual budget resolution, clearing the way for Congress to enact the biggest tax cut since President Reagan's 1981 tax relief measure.
GOP leaders seek to work out the details of the tax cut bill and send it to the White House by the Memorial Day. House Majority Leader Dick Armey (R-Texas) and Sen. Phil Gramm (R-Texas) want priority given to cutting income tax rates and reductions to other taxes. These include a tax cut for investment income and other capital gains and tax breaks for small business.
The House budget, includes the $1.6-trillion tax cut, phased in from 2002 to 2011. The House also backed Bush's plan to let government spending increase 4% in 2002. In the Senate, its version called for an $85-billion tax cut this year to stimulate the economy and spending to allow the 8% increase.
The House has passed three specific tax cut bills that would implement major elements of the Bush tax plan. The measures would cut income tax rates across the board, reduce taxes for married couples and phase out the estate tax.
Meanwhile, the Senate has been waiting until the budget resolution was enacted to take action.
©2000, 2001 Clovis Free Press. All rights reserved.
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