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CNN Saturday Morning News

Congress Nears Vote on Tax Cut Bill

Aired May 26, 2001 - 09:31   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.
KYRA PHILLIPS, CNN ANCHOR: Our top story this half hour, the House is nearing a vote on the compromise tax cut package, with the Senate vote expected later today. The plan is expected to pass both Houses for the House and the Senate.

We want to talk about what the package, as well as chat about other goings-on in Washington, with our White House correspondent Kelly Wallace. Hello again, Kelly.

KELLY WALLACE, CNN WHITE HOUSE CORRESPONDENT: Hello there, Kyra.

PHILLIPS: All right. We're going to get right to the e-mails, what do you say?

WALLACE: Let's do it.

PHILLIPS: OK. This one comes from Brett Stone in Studio City, California. "The tax cut and check in the mail sounds like a good concept. However, the most Americans facing higher than normal utility bills this summer. Won't this basically be a transfer of tax money to the energy providers?"

WALLACE: Well, that is an interesting question from Brett. Well, certainly this administration has been criticized, Kyra, as you know, for not doing enough in the short term to help consumers deal with rising gas prices at the pump and to help California residents faced with higher electricity prices. The administration, though, is saying that one thing that would help would be getting a tax cut.

So as we know, consumers or taxpayers will be getting -- individuals will get about $300, married couples about $600. Of course, if you are facing higher energy prices, some of that money may go to those prices. But again, the administration saying this is one way to kind of give a boost to the economy and hopefully eventually bring prices down at the pump and electricity prices as well.

PHILLIPS: Sounds good, right?

WALLACE: Sounds good.

PHILLIPS: All right. We're going to take a phone call now, Joe on the line from Georgia. Go ahead, Joe.

Do we have a phone call? All right, we're going to move on, Kelly. Let's move on to the e-mails. This one comes from Norman Walker in Farmville, Virginia. "Are there any rules and regulations governing an elected official leaving his or her party? Is it really as easy as declaring you no longer are associated with a particular party to leave it? Also, when does one leave a political party? Do they have to reimburse that party for past campaign support?"

Boy, a lot of questions in one there. Why don't we start with the first part, Kelly, and that is, are there rules or regulations about someone leaving their party?

WALLACE: Well, certainly this writer referring to Vermont Senator Jim Jeffords, who announced this week he would be leaving the Republican Party and becoming an independent. Very interesting, in Vermont you don't have to declare your party affiliation. So the senator does not even have to go to city hall and make any change or fill out any forms. He can say, I'm no longer a Republican, I'm now an independent, and that is it.

Not sure about the second part of that question, about reimbursing the Republican Party, but it is interesting. Republicans, those who worked on Senator Jeffords' reelection campaign, he was just reelected as a Republican in November, are very, very upset. But for the most part, the rest of the senators' constituents are very independent minded, and so far he has received more praise than criticism for this move.

PHILLIPS: Kelly, what about the reimbursement part? Do you know about that?

WALLACE: I don't know, and I don't know, and I don't believe there is any reimbursement that needs to take place. Clearly there are some hard feelings. I did see one of the Republicans who worked on Senator Jeffords' reelection campaign quite angry, feeling duped in some way, feeling that if the senator wanted to run as an independent, perhaps he should have dropped out or be reelected as an independent.

But again, I don't believe there's any actual payment that he needs to make to the Republican Party. He has basically announced the switch, and it will become effective after the tax bill is voted on in the House and Senate.

PHILLIPS: All right. This question from Los Angeles, Samuel Diaz wants to know, "Looks like the tax cut will be approved. If people wish to send the rebate check back to the government to pay specifically for a national debt, who do we contact?"

WALLACE: Well, that is a good question from Samuel. I guess maybe the Department of the Treasury may be one place, since that's where those rebate -- refund checks will be coming from. But Samuel touches on a point that many Democratic lawmakers have been hammering away at on the House floor this morning, saying that what is needed now is to pay down the debt, not to give this big tax cut, according to Democrats, which would drain the surplus and maybe return the country to the deficits of the 1980s.

To that, Republicans would say the plan would certainly pay down the debt over time. I believe the president's budget calls for about $2 trillion in paying down the debt. But of course Democrats feel that more money should be put to that priority.

So Samuel, I guess contact the Department of Treasury. They may, may have something to say.

PHILLIPS: OK, now a phone call from North Carolina. Stan has a question for you, Kelly. Go ahead, Stan.

CALLER: Yes, I was wondering why the amount of exemption on the estate tax was not raised from $675,000, it was promised to be raised to $1 or $2 or $3 million. And a particular concern, because my father recently died and left a family business, and it makes it hard.

WALLACE: Yes, well, Stan, it is being raised over time. I don't have the exact numbers right in front of me, but the full repeal of the estate tax will take place by 2010, and over time it raises the amount of the estate that is exempted from any taxing. So again, it may not come soon enough. Some Democrats are saying it's sort of ridiculous that you have to die between now and 2010 to take -- get benefits from this.

But again, it will be sort of -- the amount that will be exempt from taxes will be increased over time, and a full repeal of this tax on inheritance or so-called death tax will come in 2010.

PHILLIPS: All right, Kelly Wallace, live at the White House, always on top of every issue, great to see you, Kelly.

WALLACE: She tries. Great to see you, Kyra.

PHILLIPS: All right, I'm sure we'll see you again soon.

WALLACE: OK.

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