[Congressional Record (Bound Edition), Volume 147 (2001), Part 3]
[Extensions of Remarks]
[Page 3327]
[From the U.S. Government Publishing Office, www.gpo.gov]



          THE INDIVIDUAL INCOME TAX RATE REDUCTION ACT OF 2001

                                 ______
                                 

                            HON. MAC COLLINS

                               of georgia

                    in the house of representatives

                        Thursday, March 8, 2001

  Mr. COLLINS. Mr. Speaker, today I rise to introduce the Individual 
Income Tax Rate Reduction Act. This legislation will provide immediate, 
across the board marginal income tax rate reductions for all wage 
earners in this country, while reducing the marriage tax penalty.
  A new day has arrived in Washington. The new President is leading the 
effort to focus national attention on the issues that Americans 
support. This week, Congress has taken the first step to implement tax 
code changes that will benefit all wage earners. The marginal income 
tax rate reductions proposed by the President, reported by the 
Committee on Ways and Means, on which I serve, and recently passed by 
the House of Representatives, will have a tremendous impact on 
providing individuals and families with greater financial security. At 
a time when the federal coffers have billions of dollars in excess 
revenues, coupled with the slowing growth of the economy, is more 
appropriate than ever to provide a refund to taxpayers who have 
overpaid the bill.
  Mr. Speaker, I fully support the legislation that has been passed by 
the House of Representatives. But frankly I believe we can do more. 
Today I introduce legislation that will reduce the marginal income tax 
rates. However, at the center of this legislation is my belief that we 
must reduce the amount of taxes taken out of paychecks today. My 
legislation makes effective immediately a reduction in all of the 
marginal rates. In addition, over the next few years, the number of 
rates will be reduced from 5 to 4.

------------------------------------------------------------------------
           Current law                 Collins bill         Effective
------------------------------------------------------------------------
15 percent.......................  12 percent.........  Jan. 1, 2001.
28 percent.......................  25 percent.........  Jan. 1, 2001.
31 percent.......................  28 percent.........  Jan. 1, 2001.
36 percent to 39.6 percent.......  33 percent.........  Phased down Jan.
                                                         1, 2001 to Jan.
                                                         1, 2006.
------------------------------------------------------------------------

  My legislation will also reduce the marriage tax penalty by 
increasing the standard deduction for all taxpayers, and making the 
married deduction twice that of the single taxpayer's deduction.

------------------------------------------------------------------------
           Current law                 Collins bill      Effective date
------------------------------------------------------------------------
$7,600...........................  $12,000............  Jan. 1, 2001.
$4,500...........................  $6,000.............  Jan. 1, 2001.
$6,650...........................  $8,500.............  Jan. 1, 2001.
------------------------------------------------------------------------

  This legislation will provide taxpayers with over $30 billion in tax 
relief this year alone. Over the next ten years, wage earners will see 
their income tax bills reduced by over $1.5 trillion. It is anticipated 
that the Congressional Budget Office will soon update their projected 
budgetary estimates and report that there will be billions more 
available in unanticipated non-Social Security excess revenues. That is 
more reason than ever to provide taxpayers with meaningful tax 
reductions. Please join me in cosponsoring the Individual Income Tax 
Rate Reduction Act of 2001, so that we can provide tax relief as soon 
as possible.

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