There’s a report President Bush is considering phasing in proposed dividend tax cuts, and delaying the implementation of some tax rate reductions. Iowa Senator Chuck Grassley, the chair of the Senate Appropriations Committee, says he has not seen the proposal yet. But Grassley, who’s a republican, says he wouldn’t be in favor of delaying the tax rate reductions. Grassley says he believes it’s very necessary to concentrate on income tax relief for “working men and women” and to make all the income tax relief retroactive to January 1st of this year. Grassley says making the cuts retroactive allows taxpayers to see the results when they file taxes a year from now. Grassley says people would get their W-2’s changed in the middle of this year, and then would have more money to spend and that would rejuvenate the economy. Grassley says economists have predicted the tax cuts would create over one million jobs. Grassley says he would still like to see the dividend cuts if possible, as they would also help the economy. Grassley says decreasing the taxes on dividends would enhance people’s abilities to save money in their 401K’s very quickly. Grassley says he’s sorry he can’t do all the dividend proposals like he had originally hoped. Grassley’s position has put him in the middle of the budget process, and also made him the target of criticism. Iowa Republican Party Chairman Charles Larson called a press conference earlier this month to criticize Grassley for cutting Bush’s tax cut proposal in half. Grassley says Larson told him the comments he made were taken out of context and there’s no rift between the Senator and the state party. Grassley says he accepts Larson’s judgment that he was not speaking either for himself, the state republican party or the White House of any resentment toward him for doing what was necessary to get a budget passed. The proposal Grassley shepherded through the Senate cut the President’s tax cut proposal from over 700 billion dollars, down to 350 billion.
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