Friday, May 30, 2003

Scott votes yes on tax cuts

Late last week, Congressman David Scott voted for the final tax cut compromise between the Senate and House plans. Congressman Scott was one of only seven Democrats to support the plan, which passed the House by a vote of 231-200.

"I supported the final tax plan because it increases the child tax credit, eliminates the marriage penalty, helps small businesses, and provides aide to fiscally strapped states like Georgia. While it is not perfect, I believe that the tax cut was a major compromise by the President in response to demands by moderate members," Scott said.

The measure contains $318 billion in outright tax cuts, $20 billion in financial aid to states and $12 billion in refundable credits for working families ­ direct payments to those who don't earn enough to pay income taxes.

Most dividends and capital gains would be taxed at 15 percent. Taxpayers in the lowest two tax brackets would pay a five percent rate on dividends and capital gains.

The cuts would also expand the child credit, now $600, to $1,000; immediately lower income tax rates that were scheduled to phase in through 2006; end the "marriage penalty"; expand investment tax breaks for large and small businesses; and grant $20 billion in aid to cash-strapped state and local governments.

"The quick signature by the President should ensure that paycheck withholding levels could be adjusted by July 1, so workers would see a bump in their take-home pay for half of the year," Scott said. "About 26 million low- and middle-income families would also receive refund checks of $400 per child by the end of the summer."

The President initially insisted on a $726 billion package that would eliminate all taxes on dividends paid out of fully taxed corporate earnings. Later he advocated that at least $550 billion in cuts were essential to improve the economy. This final tax cut package would total $350 billion over ten years and is more fiscally responsible than the President's earlier plans.