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CNN Live Saturday
Tax Bill Passes Senate
Aired May 26, 2001 - 16:01 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
DONNA KELLEY, CNN ANCHOR: The House and Senate have handed President Bush a victory, passing a compromise tax cut package. Mr. Bush is expected to sign it the first week of June, that's when Congress returns from its Memorial Day recess.
First, here's what it means to you. The tax cut will include immediate tax rebates of $300 for individuals, $500 for single parents, and $600 for married couples. It totals $1.35 trillion over 10 years, and it will reduce the lowest income tax bracket from 15 percent to 10 percent, that's for the first $6,000 of an individual's income. All other brackets will be reduced, including the top bracket, which will fall from 39.6 percent to 35 percent, although that reduction won't be fully phased in until the year 2006.
The tax cut also will eliminate the estate tax, and that happens in the year 2010. It will reduce the so-called marriage penalty in 2005, will double the child tax credit by 2010, and make it refundable for low-income people who do not pay income taxes.
Following today's congressional action, President Bush interrupted his holiday vacation at Camp David to return to the White House, and joining us with details once again, out White House correspondent Kelly Wallace -- Kelly.
KELLY WALLACE, CNN WHITE HOUSE CORRESPONDENT: Well, Donna, President Bush returning to the White House to tout his first major legislative achievement, and the centerpiece of his presidential campaign. Mr. Bush though, also appeared to be trying to continue a message that senior administration officials have been putting forward all week, ever since there was the news that Democrats would soon take control of the Senate.
The message is this tax cut bill is a sign of how Republicans and Democrats can work together. Now, Mr. Bush appeared in the East Room just about an hour ago. He was joined by one of the so-called tax families, families that he highlighted during the presidential campaign and over the past several months to talk about what his tax cut would mean for middle families. The president joined by the Petersons of Richmond, Virginia.
Mr. Bush calling this a historic day, passage of the first major tax cut in 20 years. The president saying everyone will benefit.
(BEGIN VIDEO CLIP) GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: No more wondering whether you're targeted in or whether you meet all the fine print requirements to qualify for one special tax break for another. This tax relief is straightforward and fair. If you pay income taxes, you get relief.
(END VIDEO CLIP)
WALLACE: And the president also congratulated Republican and Democratic lawmakers who he said helped make this possible, even naming a few. Mr. Bush also saluting the soon-to-be majority leader of the Senate, Tom Daschle, saying that Mr. Daschle allowed the will of the Senate to go forward, even though the senator disagreed with the tax cut.
The president saying this whole debate should serve as a model for the Senate and for the White House once Democrats take control of the Senate.
(BEGIN VIDEO CLIP)
BUSH: Tax relief was based on important principles, principles that are compassionate and conservative, and principles that were preserved during the legislative process of give-and-take. We listened to the voices of those in my party and in the Democratic Party who wanted additional help for those at the lowest end of the economic ladder.
(END VIDEO CLIP)
WALLACE: But Senator Tom Daschle, the soon-to-be majority leader, has a different perspective. He accuses the administration of practicing what he calls confrontational politics, peeling away Democrats to get the tax bill approved. Senator Daschle saying this is not the true model of bipartisanship.
So, Donna, the stage is set now for this White House and this president to work with the new Democratically-controlled Senate. The president saying he will continue to fight for his agenda. White House aides say the president will continue reaching out. Democrats say he has to do more reaching out than he's been doing so far -- Donna.
KELLEY: Kelly, we kind of talked about that earlier in the day, but let's go over a little bit -- maybe a change of word might be proper. We talked about how the agenda might change. Maybe that's not the proper word. Maybe strategy from the White House is a better way to put it.
WALLACE: That is correct because the White House is making it clear that the president's agenda will not change, that Mr. Bush will continue pressing for his agenda, which he noted today includes modernizing the military, allowing religious charities to compete with secular groups for tax dollars and also prescription drug coverage for seniors and protecting Social Security. The strategy, even though White House aides say the strategy won't change, they say they will continue reaching out as they have before. Still, though, some moderates in the party, some Democrats believe the White House has to do a better job.
So, perhaps we'll see more reaching out to the Democrats. Mr. Bush has already spoken on the phone with the soon-to-be majority leader, Tom Daschle. They had a conversation on Thursday. They are likely to have a private meeting when senators return after the Memorial Day recess.
KELLEY: Kelly Wallace at the White House, thanks, as usual.
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