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CNN Saturday Morning News

Moderate Democrats Aid Passage of Tax Cut Bill

Aired May 26, 2001 - 08:00   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: A check for the up to $600 should be in your mailbox by August or September. That's the immediate in-your- pocket effect of a huge tax cut now pending before Congress. Both the House and Senate are scheduled to vote on the measure today and both are expected to pass it. Your representatives and senators will be voting on a version worked out by congressional negotiators yesterday that reconciles the differences in the House and Senate bills. After the House and Senate give their final approval, the tax cut bill will go to President Bush for his signature.

CNN's Jonathan Karl has more on the $1.35 trillion package and what's in it for you.

(BEGIN VIDEOTAPE)

JONATHAN KARL, CNN CORRESPONDENT (voice-over): A final deal on the biggest tax cut in a generation and one made possible by the support of moderate Democrats.

SEN. MAX BAUCUS (D-MT), FINANCE COMMITTEE: It's a good tax cut. It's a healthy tax cut. It's a big tax cut. And it's a fair tax cut.

KARL: An assessment Weiss House Chief of Staff Andrew Card says the president agrees with.

ANDREW CARD, WHITE HOUSE CHIEF OF STAFF: He'll be thrilled. This is a terrific victory for the American people and it's based on what the president put forward. Now, he was the one who called originally for a $1.3 trillion tax relief package. It is now reality.

KARL: The tax cut includes immediate tax rebates of $300 for individuals, $500 for single parents and $600 for married couples. At the rate of 11 million checks a week, those rebate checks will be sent out to a total of about 100 million taxpayers starting this summer. The tax cut, which totals $1.35 trillion over 10 years, will reduce the lowest income tax bracket from 15 percent to 10 percent 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 the reduction won't be fully phased in until the year 2006.

REP. BILL THOMAS (R-CA), WAYS AND MEANS CHAIRMAN: One trillion, 350 million doesn't go as far as it used to. KARL: The tax cut will also eliminate the estate tax, but not until the year 2010. It will reduce the so-called marriage penalty starting in 2005. And it doubles the child tax credit by the year 2010 and makes it refundable for low income people who don't pay income taxes. Although the tax cut was crafted with the help of moderate Democrats, most Democrats say the bill is fiscally irresponsible, benefiting the wealthy at the expense of the middle class.

(on camera): Weiss House Chief of Staff Andy Card says the president will sign the tax cut into law during the week of June 5, when Congress returns from its Memorial Day recess. Jonathan Karl, CNN, Capitol Hill.

(END VIDEOTAPE)

PHILLIPS: The Senate is set to convene this morning at 10:00 a.m., but it can't vote on the tax relief measure until it passes the House. The House is now in session and we'll let you know when a vote is imminent.

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