May 2, 2001
since President Reagan's 1981 tax relief!
Edward Davidian, Satff Writer
CLOVIS - - President George W. Bush has obtained the largest tax reduction
in a generation. The historic $1.35-trillion, 11 year tax cut, was
agreed to by the Congress yesterday.
The compromise on the historic legislation
provides for $1.6 trillion in tax relief over 10 years, starting next
year. The compromise is a welcome contrast from the eight years of
Clinton refusal of numerous GOP tax cut bills. President Bush said,
"This is a meaningful, significant, sweeping tax relief, the most
tax relief in a generation."
The compromise is expected to set the stage
for further needed legislation on another part of the budget, total
government spending. Sources said late last night negotiators were
getting close to agreement on setting growth near 5 percent.
Bush's tax and spending targets limits appear
to be part of an annual budget resolution, clearing the way for Congress
to enact the biggest tax cut since President Reagan's 1981 tax relief
GOP leaders seek to work out the details
of the tax cut bill and send it to the White House by the Memorial
Day. House Majority Leader Dick Armey (R-Texas) and Sen. Phil Gramm
(R-Texas) want priority given to cutting income tax rates and reductions
to other taxes. These include a tax cut for investment income and
other capital gains and tax breaks for small business.
The House budget, includes the $1.6-trillion
tax cut, phased in from 2002 to 2011. The House also backed Bush's
plan to let government spending increase 4% in 2002. In the Senate,
its version called for an $85-billion tax cut this year to stimulate
the economy and spending to allow the 8% increase.
The House has passed three specific tax cut
bills that would implement major elements of the Bush tax plan. The
measures would cut income tax rates across the board, reduce taxes
for married couples and phase out the estate tax.
Meanwhile, the Senate has been waiting until
the budget resolution was enacted to take action.