Arlen Specter: “I am pleased to vote in favor of the Taxpayer Relief Act, which will provide the first significant tax cut to working…”

“I am pleased to vote in favor of the Taxpayer Relief Act, which will provide the first significant tax cut to working Americans in 16 years. Although I still believe that we ought to move to a system of a fairer, flatter tax without myriad exemptions and deductions, this bill represents an important first step toward relieving the tax burden on working Americans and families. This tax bill provides a net tax reduction of $96 billion over 5 years while remaining on a glide path toward a balanced budget. Specifically, I am pleased that the final package includes a $500 per child tax credit, tax incentives for education, including education IRA's, a modified Hope Scholarship and tax free treatment of State prepaid tuition plans. It also takes important steps toward expanding participation in IRA's, a reduction in the capital gains tax and AMT, and incentives for small business by reinstatement of the home office business deduction and an acceleration in the phase in of the self- employed health insurance deduction. On estate taxes, an area where I have long believed that we must have relief, this bill would help family farmers and small businesses by increasing the exclusion to $1.3 million. It would also increase the exclusion for families to $1 million over 10 years.”