Rich Neal: “today we are debating a historic budget agreement which would balance the budget by 2002. The resolution we are voting…”

“today we are debating a historic budget agreement which would balance the budget by 2002. The resolution we are voting on today just locks the numbers in place. There are still many details that have to be worked out before we vote on omnibus budget reconciliation legislation. This debate reminds me of the old saying ``the devil is in the detail.'' It is these details which could ruin the historic agreement. The resolution calls for $135 billion in gross tax cuts and $85 billion in net tax cuts over 5 years. There is no firm agreement on the design of the tax package. The elements to be included in the package are education tax provisions, capital gains estate taxes, a $500 family credit, and expanded IRAs. $35 billion of the tax cuts are geared towards education. We do not want a repeat of tax legislation which passed this House during the 104th Congress. Only 8 percent of the population realizes capital gains in any given year. Capital gains relief should be targeted and geared towards individuals. Indexing of capital gains will be a source of substantial complexity for taxpayers and open up loopholes in the tax code. New types of tax shelters could be created. Last Congress's capital gains relief was skewered to the wealthy. Seventy-six percent of the capital gains tax cut would have gone to taxpayers with income of $100,000 or more.”