FOR IMMEDIATE RELEASE
CONTACT: FRANK CULLEN JR. -- (202) 225-5330

July 22, 1999

WASHINGTON, D.C. – Congresswoman Mary Bono (R,CA) today voted to return money to America's hard-working families and take it out of the hands of Washington bureaucrats. Bono's support of the Financial Freedom Act of 1999 reaffirms that future tax relief is contingent on continued federal budget surpluses in the targeted years. Now families will have the freedom to save, spend or invest their money as they see fit, according to Bono. "I trust the American people to make the best use of their hard earned dollars, not the Washington bureaucrats," Bono said. "The culture of Washington is a culture of spending, and unless we break this cycle, we will never give hard-working people the financial freedom they need to make the best use of their money." The bill, H.R. 2488, provides $792 billion in broad-based tax relief over the next ten years with a 10% across-the-board reduction in individual income tax rates. This legislation particularly benefits married families, parents saving for their children's education, farmers, small business owners and those saving and investing for their retirement. Specific provisions of the bill include:

• Reduces the impact of the "marriage penalty" by increasing the standard deduction for married couples to twice that of singles
• Provides education tax relief by expanding the use of tax-free expenditures from education savings accounts (ESAs) to include elementary and secondary school expenses, increases to $2,000 annually the maximum contribution to ESAs and other provisions
• Allows 100% deduction for health insurance and long-term care premiums
• Reduces the individual capital gains rate from 20% to 15% & from 10% to 7.5%
• Increases contribution limits to 401(k) and other retirement plans
• Phases down the federal estate tax, repeals them entirely within 10 years