The cuts, targeting

retirement savings, health care coverage, small business job growth and

economic development of distressed communities, passed the House 237-174.

"The pillar

of our economy is small business, and today the House passed legislation

which will strengthen small businesses and help Americans working in small

businesses gain greater access to health insurance and pensions,"

Collins said. "This legislation also contained provisions to encourage

the economic development of rural and economically distressed areas."

Collins said

the legislation accelerates a 100 percent deduction of health insurance

for the self-employed, and widens the category of those eligible for this

deduction. It also would accelerate expensing of business investments

from $20,000 to $35,000.

"These

measures encourage investment in small businesses, and increasing the

number of Americans with health insurance," Collins said. The legislation

accelerates the increase in the deduction for business meals from 50 to

80 percent for workers subject to Department of Transportation limits

on service.

Another measure

will help those trying to buy or sell small businesses. The bill allows

the businesses to use an installment method for paying taxes. Current

law demands payment of all taxes at the time of sale.

The bill provides

an additional personal deduction to care takers of family members. They

will get a $3,000 deduction in 2001, which will increase by $1,000 per

year to $10,000 in 2008. "Often, the best and most cost-effective

care an American can receive is at home," Collins said. "This

tax bill provides help to those who care for relatives at home."

The bill also

contains provisions that will help local school districts raise funds

for school construction through issuance of bonds. The bill will provide

access to an additional $7.8 billion in tax-based school construction

assistance over 10 years, Collins said.

The legislation

provides incentives for economic development in "renewal communities"

and "empowerment zones." An additional 12 rural areas will be

allowed to receive tax benefits which include, but are not limited to,

wage credits and additional expensing. The bill also takes action to adjust

taxation of American importers so they will be able to better compete

with foreign firms, and also contains a provision that Collins has worked

for ever since he joined the Ways and Means Committee: ending a 4.3 cents

per gallon fuel tax on diesel fuel used by trains or boats using the inland

waterway.

Collins noted

that the tax is not paid into trust funds, such as the airport trust fund,

or the highway trust fund. Instead, the taxes are imposed simply to generate

income for the general fund. Collins has long worked for repeal of these

taxes. "Transportation taxes are passed on to every American on everything

they buy," Collins said. "When we have positive cash flow, we

can certainly cut these costs."

Collins noted

that the bill also forbids the Internal Revenue Service from enacting

its proposal to end the child deduction for parents of children that have

been kidnaped. Earlier this year, the IRS proposed removal of the deduction

for parents of kidnaped children, but withdrew the proposal after criticism.

"That was a bad idea, and this legislation will ensure that this

bad idea never comes back," Collins said.