Republicans in the Senate are confident that the tax cut bill currently being considered will pass and will make its way to the President's desk by May 25th. 

The bill, the "Restoring Earnings to Lift Individuals and Empower Families Act of 2001" (RELIEF), contains most of the major elements of the Bush tax plan and of the version recently approved by the House. It includes an across-the-board income tax cut, phased-in estate tax repeal, doubling of the child tax credit, and "marriage penalty" relief. But as a "bipartisan compromise," RELIEF differs in a few ways.

Though the President had sought $1.6 trillion in tax cuts over ten years, RELIEF follows the recently passed Congressional budget plan and is projected to cost $1.35 trillion over 11 years. 

RELIEF's tax cuts for higher-income individuals are smaller than they would have been under the President's plan, and lower-income individuals may see more benefit sooner under RELIEF. The bill also has a longer list of tax breaks than the President proposed. For example, RELIEF would:

• Drop the 15% income tax rate to 10%, effective this year, rather than phased-in over five years;
• Immediately increase the child tax credit from $500 to $600;
• Give lower- and moderate-income individuals a tax credit of $1,000 for contributions to IRAs, 401(k) plans or other retirement plans;
• Lower the top 39.6% rate for higher-income workers to 36%, rather than to 33% under the Bush and House plans;
• The estate tax repeal would be phased in by 2011, and the estate tax exemption would increase from $675,000 to $4 million by 2010, while the top estate tax rate of 55% would drop to 50% next year and then gradually decline to 45% by 2010;
• The gift tax would not be repealed as in the Bush and House plans, but the top rate would decline to 40% by 2011.