Wednesday, March 14, 2001
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Wednesday, March 14, 2001 |
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Collins bill would add $600 billion to Bush's tax cuts By DAVE
HAMRICK
Fayette County's representative in the U.S. House isn't content with President George W. Bush's initial $900 billion tax cut plan. Mac Collins wants more. Collins Thursday introduced the Individual Income Tax Rate Reduction Act of 2001, which would cut personal income taxes an additional $600 billion over the ten years of the Bush plan $30 billion in the first year. Bush's $900 billion tax cut was approved by the House Thursday, the same day Collins introduced his bill. Bush also is proposing changes in the tax code to bring about $700 billion more in tax relief, but has not yet introduced that legislation. Collins, who represents several west Georgia counties in addition to Fayette, told The Citizen Monday that he introduced the additional tax cuts because economists are predicting higher revenues than previously expected, and because the economy is sagging. His bill would provide across-the-board marginal income tax rate reductions for all wage earners as well as changes designed to simplify the tax system and reduce the marriage penalty. "A new day has arrived in Washington," Collins said. "I fully support the legislation that has been passed by the House of Representatives, but I believe we can do more." He said he believes "that we must reduce the amount of taxes taken out of paychecks today to help restart our economy." Collins said the reduction would take place immediately and would gradually reduce the number of tax brackets from five to four. It would also reduce the marriage tax penalty by increasing the standard deduction for all taxpayers, and making the married deduction twice that of the single taxpayer's deduction. Under current law, an unmarried couple benefits from two full deductions, while a married couple gets only one and a half standard deductions. Economists are expecting the Congressional Budget Office to soon release its updated estimates on government revenue, which they predict will be higher than previously estimated. If this is the case, Collins says, the nation will be able to implement his legislation within the restraints of the balanced budget. "Treasury has already reported in committee hearings that revenues have gone up considerably more than they had expected," Collins told The Citizen. "I think the additional moneys are there now for tax relief." "The problem with tax reductions aimed at stimulating economic recovery," Collins said, "is that they usually come too little, too late. "We need to move forward with more tax relief up front." He has sent his bill to the White House, but doesn't yet know whether the president will support it, Collins added. In its first year, Collins' bill would reduce the lowest marginal income tax rate from 15 percent to 12 percent. The current 28 percent bracket would be reduced to 25 percent; the 3 percent bracket to 28 percent, and the 39.6 percent top bracket would be phased down to 33 percent by 2006.
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