Congress
Eyes Tax Relief for Working Americans
Majority leadership crafting $260 billion
tax relief package
WASHINGTON- As the second session of the 106th Congress winds down, congressional
leaders are trying to put together a 10-year, $260 billion tax cut
proposal that would help working Americans by expanding individual
retirement accounts and offering tax incentives to revive poor communities.
Grover
Norquist, president of Americans for Tax Reform, issued the following
statement highlighting the components of this tax relief package
that will help working Americans:
"This
tax package that the majority leadership is touting will help working
Americans by providing many components in the plan that will benefit
the average working American.
"For
example, under this tax relief package, the cap on individual IRA
contributions would be increased from $2,000 to $5,000 and the cap
on 401(k) contributions would be raised from $10,500 to $15,000.
In addition, there will be a special $7,500 IRA 'catch-up'
cap for people older than 50.
Moreover, there would be tax credits implemented for businesses
to offer pension plans to their employees.
"These
savings and retirement oriented tax breaks and credits are very
important because they provide working Americans with an opportunity
to save more for their retirement so that they don't have to be
as reliant on Social Security, which has a tenuous future at best.
"Small
businesses will also get tax relief if a minimum wage increase is
passed. The small business
tax breaks include a 100 percent deduction for health insurance
costs for those who pay at least half their own premiums, an increase
in the business meal tax deduction, and an increase in the amount
of equipment a business can write off as expenses.
"These
small business components in the tax relief package are important
because they offer a way for businesses to offset the cost of a
minimum wage increase without having to pass along the majority
of the wage increase to consumers in the form of higher prices."
