May 23 2001

SENATE PASSES TAX BILL

Tax Package Includes Reduction in Income Tax, Phase Out of Estate Tax, Increase of Maximum IRA Contributions, and Provides Marriage Penalty Relief

U.S. Senator Richard C. Shelby (R-AL), today voted in support of the tax reconciliation bill. The legislation includes provisions that would reduce income taxes, phase out estate taxes, increase maximum IRA contributions, and provide marriage penalty relief.

"The legislation passed by the Senate represents the largest tax cut in a generation," said Shelby. "The $1.35 trillion tax cut will bring significant and long overdue tax relief to hardworking Alabamians."

The legislation also contains reductions in marginal rates, death tax elimination, and doubling of the child tax credit.

"We are at the highest level of individual taxation in our nation's history," added Shelby. "The legislation we have passed today will lower taxes responsibly and fairly. This is a tax relief package that will help out every taxpayer-without dipping into Social Security and Medicare. This is a tax relief package that includes a retroactive reduction in tax rates that will provide the immediate jump-start our economy needs."