Tax reform is on the back burner now, but House Ways and Means Committee Chairman Bill Archer, R-Texas, remains committed to ending the Internal Revenue Service as we know it. It's likely he will continue trying to reignite public support for the effort. Historically, a tax reduction has generally translated into increased federal government revenues. The dire rhetoric of Washington special interest groups often wins out over the actual feat of cutting government spending. This will be spread over five years.
Capital gains tax cut.
Family and friends remain a critical source of funding for start-up and growth enterprises, but high capital gains taxes still are a deterrent to raising capital. Thus, small-business owners have been big supporters of capital gains tax reduction and elimination. As chairman of the powerful Ways and Means Committee, Archer is a strong proponent of a broad-based capital gains tax cut. He met with Clinton before the new year to determine whether the president would consider a capital gains tax cut greater than the homeowner's tax break he campaigned on this past fall. Archer walked away from the meeting optimistic.