[Congressional Record Volume 145, Number 51 (Wednesday, April 14, 1999)]
[Senate]
[Pages S3707-S3708]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. CAMPBELL:
  S. 799. A bill to amend the Internal Revenue Code of 1986 to modify 
the tax brackets, eliminate the marriage penalty, allow individuals a 
deduction for amounts paid for insurance for medical care, increase 
contribution limits for individual retirement plans and pensions, and 
for other purposes; to the Committee on Finance.


                               tax relief

  Mr. CAMPBELL. Mr. President, today I offer an important piece of 
legislation. The bill I offer today, called the American Family Tax 
Relief Act of 1999, is a modest, but important tax relief package. This 
bill is important for both substantive and symbolic reasons. 
Substantively, this bill provides all Americans with needed tax relief. 
If the need for tax relief isn't yet apparent to everyone, tomorrow 
will remind all Americans of the need when they submit tax returns 
which reflect an ever larger percentage of their income going to the 
federal government.
  This bill is also important as a symbol to the American public that 
Congress remains committed to the principle of a smaller federal 
government and lower taxes. We should not use the unusually good 
economic times we enjoy as an excuse to delay providing tax relief to 
hard-working American families. No, we should instead take this 
wonderful opportunity to recommit ourselves to fiscal discipline and 
responsibility.
  We are already taking important steps in this regard by locking up 
the social security trust fund to ensure its solvency. We are also 
devoting a significant portion of the surplus to retiring publicly held 
debt, which will reduce the drain on federal spending for interest on 
this debt. The next step is to provide tax relief. This is a platform 
many of us have stood upon, and is therefore a pledge we must honor. If 
we can't provide tax cuts in good times, think how difficult it would 
be in bad times.
  This bill I offer today has five different components: the largest 
component of this legislation would lower all individual income 
tax rates by 5%. Although this is substantially less than the 10% tax 
cut I have also supported, this modest reduction will more easily fit 
in the budget offsets after social security solvency and debt 
retirement have been addressed. By letting all Americans keep more of 
their income, they will be free to spend or save more of it. By now, we 
all know that the end result of this is a healthier, more robust 
economy.

  The second component would expand the lowest income tax bracket, a 
targeted tax break for middle income tax payers. In addition to the 5% 
across the board reduction, many middle income earners would now fall 
into the lowest tax bracket, thereby paying even lower taxes than they 
would under the existing tax code.
  Third, I would repeal the marriage penalty. Last year during my 
reelection campaign, I heard from hundreds of Coloradans asking me to 
repeal this offensive part of the tax code. I agree with all of them 
that we need a tax code that underscores the value we place on 
encouraging families, not one that discourages or penalizes marriage. 
This bill would do that.
  Fourth, this bill would bring needed relief to many taxpayers by 
allowing the full deductibility of health insurance. Even folks who 
don't meet the minimum criteria needed to itemize their deductions, 
often single folks or lower income folks, could still deduct their 
health insurance. This is a critical step towards providing all 
Americans with health insurance coverage and reducing the cost of this 
critical component of modern life.

[[Page S3708]]

  The last piece of this bill would encourage greater individual 
responsibility for retirement planning. By allowing a taxpayer to 
contribute more into an IRA without being taxed, more individuals will 
contribute more to their own retirement. The end result would be less 
reliance and less strain on Social Security and other entitlement 
programs. The more Congress can lead the way in weaning ourselves off 
of federal entitlements by encouraging individual retirement planning, 
the more government will shrink while increasing its efficiency.
  I conclude by inviting my colleagues to take a good look at this bill 
and work with me on reasonable changes and to support its passage.
                                 ______