April 5, 1995(Key vote)
Title: Contract With America Tax Relief Act of 1995
Vote Smart's Synopsis:
Vote to pass a bill that cuts personal and business taxes by $189 billion over 5 years.
- Provides a $500 per child tax credit for families earning under $200,000.
- Decreases the "marriage penalty" in the Federal tax code.
- Increases to $750,000 the threshold at which assets are not subject to estate and gift taxes.
- Establishes a new type of individual retirement plans (IRAs) called the "American Dream Savings Account" that allows individuals to invest up to $2,000 per year or compensation equal to an individual's gross income for a taxable year, whichever is less.
- Allows individuals to withdraw funds from American Dream Savings accounts for first-time home purchases, education expenses, and emergency medical expenses.
- Reduces the alternative capital gains tax on corporations from 35 percent to 25 percent.
- Phases out the alternative minimum tax on corporations.
- Increases the pension contributions of Federal employees.