Wednesday, March 13, 2002
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Wednesday, March 13, 2002 |
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Collins hails passage of stimulus provisions Fayette's U.S. representative, Mac Collins, is claiming victory in the Senate's passage last week of the Worker Assistance and Job Creation Act (HR 3090) to help those laid off in the wake of the terrorist attacks of Sept. 11. The bill will provide up to an additional 26 weeks of unemployment benefits to displaced workers, just as many workers' benefits begin to expire this week. In addition to extended unemployment payments, the bill will provide basic tax relief to businesses to help stimulate growth. Included in the bill were provisions of tax relief that Collins called upon Senate Majority Leader Tom Daschle to support in a letter dated Feb. 27. Specifically, the bill allows businesses to defer tax payments. This change provides employers with a tax deduction of up to 30 percent of the cost of a capital investment, as long as it has a depreciation life of 20 years or less, according to current tax law. "This is an important incentive for businesses to make purchases that will increase their productivity, which ultimately serves to strengthen the health and confidence of the economy and the work force," said Collins. "Someone has to sell that equipment, another person makes it, yet another operates it. Each step along the line means more jobs, more people working, and more money in the economy," he said. Another tax change that Collins supported in his letter to Daschle is the repeal of the corporate Alternative Minimum Tax, which was passed by the House of Representatives previously. The AMT is structured so that it requires businesses to make additional tax prepayments during lean or unprofitable years. While the most recent bill does not contain a full repeal, it does ensure that the added depreciation deduction does not trigger the Alternative Minimum Tax for small businesses. "It is the height of foolishness to further penalize businesses in years when they have lost money by forcing them to pay more tax when they are least able to afford it," said Collins. "The relief included in the bill most recently passed is an important first step. But full repeal of the corporate AMT is needed if we are to encourage additional investments in the economy," he said. HR 3090 is the fourth attempt by the House to pass a stimulus measure and the first that Daschle has allowed to come to the floor of the Senate for a vote. The measure passed by an 85-9 majority in the Senate. During the legislative debate on stimulus, Collins accused Daschle of obstruction of measures to help the economy and to get people back to work. "I called Sen. Max Cleland this morning to encourage him to support this measure and to urge Sen. Daschle to bring this bill to the floor. I am pleased that a vote was permitted," said Collins. "While there is not much that 'Dr. No,' as we call Daschle, and I agree on, I do agree with him that the creation of health insurance tax credits is the wrong approach to meet the health care needs of the uninsured," Collins said. The bill will now head to the White House, where President George W. Bush has said he will sign it.
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