May 26 2001

CONGRESS 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), voted in support of the tax reconciliation conference report that passed both the U.S. House of Representatives and the U.S. Senate today. The legislation includes provisions that would reduce income taxes, phase out estate taxes, and provide marriage penalty relief. The conference report also provides for a refund check to all taxpayers.

"The legislation passed by Congress represents the largest tax cut in a generation," said Shelby. "The tax cut will bring significant and long overdue tax relief to hardworking Alabamians and ensures that the surplus will not go to wasteful government spending."

The legislation also contains a doubling of the child tax credit and significant pension reform, such as increasing maximum IRA and 401(k) contributions in order to encourage retirement savings.

"This is a tax relief package that will help out every taxpayer-without dipping into Social Security and Medicare funds," added Shelby. "Our changes to the tax code will lower taxes responsibly, fairly and immediately-this legislation includes a retroactive reduction in tax rates that will provide the jump-start our economy needs. I am pleased with the compromise Congress reached today on taxes."