FOR IMMEDIATE RELEASE: June 27, 1997
CONTACT: Dana Hagerty 202/225-2165
WASHINGTON, DC -- Congressman Collin C. Peterson last night voted in favor of the "Blue Dog" Coalition's tax bill, and against the House Republican's bill, which he calls "flawed".
"The Blue Dog's plan is the better tax bill," Peterson said. "It provides immediate tax relief to Mainstream America -- small businesses, farmers and working families -- and it does all of that in a fiscally-responsible way.
"Most people support tax cuts, but we have to provide tax relief and balance the budget at the same time. Tax relief must be targeted to working families, and most importantly, it must not bust the budget," Peterson continued.
"The House Republican's bill is deficient in many respects and it will explode the budget deficit after the next 10 years.
"But the better bill -- the Blue Dog tax bill -- rewards the people who make our country work -- small businesses that create 85 percent of the new jobs in this country, farmers, and working people," Peterson said.
The Blue Dog Coalition's tax bill contains:
A capital gains tax provision that provides for a straight 10 percent exclusion per year, up to 50 percent for assets held five years or longer.
Immediate estate tax relief for small business and farmers. The exemption for closely held businesses, ranches and family farms is immediately increased to $1 million. It also increases the unified credit to $1 million in 2002, and $1.2 billion in 2004, the first increase in the unified credit since 1976.
A family tax credit that provides a $500 tax credit for all children under age 17. This credit is phased out between $60,000 and $75,000 -- not $110,000 like the Republican bill.
The $1,500 HOPE scholarship and $10,000 tuition deduction education tax breaks that President Clinton proposed earlier this year.
"The Blue Dog plan provides these tax breaks without breaking the bank, because it doesn't backload the provisions," Peterson said. "I was disappointed that our plan didn't pass, but I was pleased to see 164 Democrats support it. While I can't support the current House-passed tax bill, I am optimistic that the Senate will help us fix its problems so that we can send the President a bill he will sign."