THE VIRGINIAN-PILOT
Copyright (c) 1995, Landmark Communications, Inc.
DATE: Monday, April 10, 1995 TAG: 9504100036
SECTION: LOCAL PAGE: B5 EDITION: FINAL
LENGTH: Medium: 84 lines
Tax cuts: By a vote of 246 for and 188 against, the House sent the Senate a bill (HR 1215) to cut personal and business taxes by $189 billion over five years. The lost revenue is to be offset by domestic spending reductions, most of which have not yet been legislated.
The bill provides families earning up to $200,000 with annual $500-per-child tax credits beginning in 1996; grants tax credits to reduce the ``marriage penalty'' on couples' income tax rates; and gradually increases to $30,000 the amount seniors can earn without forfeiting some of their Social Security income.
It reduces to 50 percent the portion of Social Security benefits upon which higher-income retirees pay taxes, and it increases seniors' tax deductions for premiums on long-term-care insurance.
To induce Americans to save more, the bill establishes a new-style individual retirement account in which accrued interest is never taxed. Additionally, the bill excludes half of capital gains from taxation and indexes gains against inflation; eliminates the alternative minimum tax on corporations; and increases tax and depreciation benefits for small businesses.
Among its revenue measures, the bill obtains $10.5 billion by requiring executive branch and congressional employees, including lawmakers, to contribute more into their pension plans. About $177 billion is to be gained from not-yet-specified cuts in domestic spending.
A yes vote supported ``Contract With America'' tax cuts.
Bateman Yes Pickett No
Scott No Sisisky No
Clayton No Jones Yes
Democratic plan: By a vote of 119 for and 313 against, the House rejected a Democratic alternative to the Republican tax bill (HR 1215, above). It cut taxes by nearly $32 billion over five years with an emphasis on promoting education. It limited tax breaks to families earning less than $100,000, set up an education bond and expanded IRAs to help families save for higher education, and allowed the deduction of interest payments on student loans.
The Democratic plan delayed tax cuts until the Office of Management and Budget certified that the budget will be balanced by 2002.
A yes vote supported the Democratic tax bill.
Bateman No Pickett No
Scott No Sisisky No
Clayton Yes Jones No
Tax credits: By a vote of 168 for and 265 against, the House refused to make four Democratic changes in HR 1215 (above): Lower from $200,000 to $95,000 the family income limit for receiving $500-per-child tax-cuts; require members of Congress but not their staff or civil servants to make higher pension contributions; delay all tax cuts until budget-balancing marks have been met; and close a loophole that enables a few wealthy families to renounce their citizenship to avoid U.S. taxes.
A yes vote backed the Democratic bid to send the bill back to committee for major changes.
Bateman No Pickett No
Scott Yes Sisisky No
Clayton Yes Jones No SENATE
Spending issue: By a vote of 48 for and 46 against, the Senate tabled (killed) an amendment to spend about $10 million more this year on a Department of Education program to put computers in schools, taking the money from the planned purchase of executive aircraft for high-ranking military officers. This occurred during debate on an appropriations bill (HR 1158).
Charles Robb No John Warner Yes
Jesse Helms Yes Lauch Faircloth Did not vote ILLUSTRATION: ROLL CALL: How area members of Congress voted for the week
ending April 7.
[Photos, telephone numbers and addresses of senators and
representatives from Virginia and North Carolina.]
To reach any representative or senator on any issues that concern
you, call (202) 224-3121.
by CNB