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Newspaper
Delaware County Daily Times
Location
Chester, Pennsylvania, United States of America
Date
Jul 29, 1981
Page
7
President Reagan and House Democratic leaders pressed ahead with a tax cut plan as the Senate, then aligned with Republicans, completed a debate on increasing a child care tax credit from 400 to 720 dollars, signaling a major shift in fiscal policy amid partisan tension.
In a Democratic dominated House Reagan builds a coalition of Republicans and conservative Southern Democrats to pass budget cuts. Of 26 Conservative Democratic Forum members, 10 back Reagan, 10 favor the Democratic bill, and six remain undecided per Rep. G W Montgomery. The Democratic plan proposes a 21 month 15 percent tax cut for incomes from 15000 to 50000, continuing a third year only if the economy strengthens.
A summary contrasts the administration and Democratic tax bills. Democrats favor faster rate cuts for lower to middle incomes with inflation indexing and a marriage penalty relief, while Republicans push broader three year cuts with automatic triggers, higher standard deductions, and selective corporate relief. Both aim to end estate taxes and adjust IRA rules, with key differences in timing and scope.
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