Associated Builders and Contractors (ABC) hailed last week’s vote in the House of Representatives to approve a key element of President Bush’s tax-cut plan.
The House voted 230-198 to approve the Economic Growth and Tax Relief Act of 2001 (H.R. 3), which reduces the tax rates for individuals. The bill replaces the current five-rate income tax structure for individuals – from 15, 28, 31, 36 and 39.6 percent with a simplified, four-tier structure: 10, 15, 25, and 33 percent. The measure now goes to the Senate for consideration.
President Bush’s proposal provides significant tax relief to millions of businesses and their employees, especially small businesses that are structured as sole-proprietors, partnerships or S-corporations and pay taxes at the individual rates.
