The US Congress began its consideration of President Bush's tax-cut proposals at the start of this week. In a slightly unconventional move the proposals were jointly presented by Republican, Senator Phil Gramm, and maverick Democrat, Senator Zell Miller.
As the Republicans attempt to push the proposals through a Senate that is divided equally between the two parties, Senator Miller's support may prove vital to them. In justifying his position Mr Miller stands firm on his decision and even hints that there may be more tax cuts to come, saying: 'Right now, our taxes have never been higher ... our surplus has never been greater. To me it's just plain common sense that you deal with the first by using the second ... we're joining together in a crusade to see this tax cut is passed in its totality [which may] actually get larger during the legislative process.'
The Democrats also submitted their own tax cut plans, saying they will continue to call for smaller and more focused tax cuts. Senate minority leader, Tom Daschle, who has headed the proposals for a separate tax package told the US press: 'We are willing to negotiate. At the same time, we are committed to two fundamental principles. First, the bulk of the tax relief must go to middle-class working families, because they are the people who need tax relief most. Second, any tax cut must be affordable and fiscally responsible.'
In his proposals, currently devoid of figures, Daschle has included provisions to do away with the marriage tax penalty, eliminate the inheritance tax on nearly all estates and assist families in paying for college. Further plans will provide incentives to save for retirement and care for the disabled and elderly.
President Bush's planned $1.6 trillion tax-cuts involve the reduction of all income tax rates, increasing child credit, repeal of the federal large estate tax and concessions for married couples. Some members of Congress are also considering additional provision for individual retirement accounts and 401(k) retirement programmes. The majority of the provisions will be incrementally introduced over a period of five to eight years although, if the economy shows signs of flagging, the process may be accelerated.
Mr Gramm has said that the Republicans expect the federal budget surplus over the next ten years to be around $5.6 trillion. From this sum $2.9 trillion is likely to come from outside of the Social Security scheme. Both parties have agreed not to utilise the Social Security surplus for tax cuts or further spending.
Mr Gramm has said that the Bush plan as he presented it to Congress is likely to be revised by both Congress and Bush's administration. But Speaker, J Dennis Hastert, confirmed that he and the Senate's Republican leader, Trent Lott, are 'going to work with the president to get it through both the House and the Senate the best we can and try to keep to the president's principles and parameters.'
.
Network Tweets
Network BlogsContent
provided by
|
Archive | Resources | Partners | Site Map | Links | Newsletter Archive | Contact | RSS Feeds | About | Syndication | Advertising & Marketing | Recruitment | Terms & Conditions | Privacy
Copyright © 2012 - All Rights Reserved - Tax-News.com
IMPORTANT NOTICE: Tax-News.com has taken reasonable care in sourcing and presenting the information contained on this site, but accepts no responsibility for any financial or other loss or damage that may result from its use. In particular, users of the site are advised to take appropriate professional advice before committing themselves to involvement in offshore jurisdictions, offshore trusts or offshore investments.
Write a comment