The cut has a fail-safe to protect future balanced budgets, that is triggered by interest payments on the National Debt, Collins explained. If revenues fall below projections and endanger the balanced budget, the reductions are frozen. Collins said the bill contains measures that encourage savings and investment. A high tax burden is a sure way to guarantee that earnings cannot be saved and invested. We encourage small businesses to invest by reducing capital gains tax rates.
Small businesses generate the most jobs in America and are a major source of our economic strength.
By phasing down and eventually repealing the estate tax, we will preserve the family farms and businesses that will otherwise have to be sold to pay the death tax. The bill also removes the tax disparity for married couples. The legislation provides them a larger joint deduction. Collins scored two coups in simplifying the tax code during consideration of the bill by the Ways and Means Committee. He introduced two amendments that cut red tape without costing extra money.