Senate Passes Tax Cut Bill

The Senate approved a $1.35 trillion tax cut package on Wednesday that includes across-the-board income tax rate cuts and the gradual repeal of the estate tax, news services reported.

Repeal of the so-called "death tax" has been strongly supported by the American Trucking Associations and by related groups like truck stops that also include many family owned operations. (Click here for the full ATA statement.)

The tax cut bill, which will give all taxpayers a break this year and lowers the top 39.6% rate to 36%, passed by a 62-38 margin.

Since the tax cut will put more spending money in the hands of U.S. consumers, it could benefit the trucking industry. If consumer spending increases because of the cut and more goods are purchased, trucking shipments will rise.

The House of Representatives has also approved a tax cut and the repeal of the estate tax, and the two bodies must now work out other differences in a conference committee.

"...We would like to see as much tax relief as can be provided to Americans and we support the estate tax bill as part of that," Pete Jeffries, spokesman for House Speaker Dennis Hastert (R-Ill.), told Transport Topics.

Even though Sen. James Jeffords of Vermont said Thursday he is leaving the Republican Party to become an independent (See Executive Briefing, May 24), senators of both parties agree the switch will have little bearing on the outcome of the tax debate, the Associated Press reported.

GOP negotiators, however, remain determined to get the bill to the president by Memorial Day.

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