Wednesday, November 1, 2000
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Wednesday, November 1, 2000 |
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Collins happy about new tax package
U.S. Rep. Mac Collins said this week he hopes the president will sign a new tax cut package approved by the House of Representatives last week. The cuts, targeting retirement savings, health care coverage, small business job growth and economic development of distressed communities, passed the House 237-174. "The pillar of our economy is small business, and today the House passed legislation which will strengthen small businesses and help Americans working in small businesses gain greater access to health insurance and pensions," Collins said. "This legislation also contained provisions to encourage the economic development of rural and economically distressed areas." Collins said the legislation accelerates a 100 percent deduction of health insurance for the self-employed, and widens the category of those eligible for this deduction. It also would accelerate expensing of business investments from $20,000 to $35,000. "These measures encourage investment in small businesses, and increasing the number of Americans with health insurance," Collins said. The legislation accelerates the increase in the deduction for business meals from 50 to 80 percent for workers subject to Department of Transportation limits on service. Another measure will help those trying to buy or sell small businesses. The bill allows the businesses to use an installment method for paying taxes. Current law demands payment of all taxes at the time of sale. The bill provides an additional personal deduction to care takers of family members. They will get a $3,000 deduction in 2001, which will increase by $1,000 per year to $10,000 in 2008. "Often, the best and most cost-effective care an American can receive is at home," Collins said. "This tax bill provides help to those who care for relatives at home." The bill also contains provisions that will help local school districts raise funds for school construction through issuance of bonds. The bill will provide access to an additional $7.8 billion in tax-based school construction assistance over 10 years, Collins said. The legislation provides incentives for economic development in "renewal communities" and "empowerment zones." An additional 12 rural areas will be allowed to receive tax benefits which include, but are not limited to, wage credits and additional expensing. The bill also takes action to adjust taxation of American importers so they will be able to better compete with foreign firms, and also contains a provision that Collins has worked for ever since he joined the Ways and Means Committee: ending a 4.3 cents per gallon fuel tax on diesel fuel used by trains or boats using the inland waterway. Collins noted that the tax is not paid into trust funds, such as the airport trust fund, or the highway trust fund. Instead, the taxes are imposed simply to generate income for the general fund. Collins has long worked for repeal of these taxes. "Transportation taxes are passed on to every American on everything they buy," Collins said. "When we have positive cash flow, we can certainly cut these costs." Collins noted that the bill also forbids the Internal Revenue Service from enacting its proposal to end the child deduction for parents of children that have been kidnaped. Earlier this year, the IRS proposed removal of the deduction for parents of kidnaped children, but withdrew the proposal after criticism. "That was a bad idea, and this legislation will ensure that this bad idea never comes back," Collins said.
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