View Full Version : Tax Relief is Strengthening Our Economy

10 Feb 04,, 01:58
Tax Relief is Strengthening Our Economy

In the past three years, President Bush has proposed and signed into law three bills reducing the tax burden on American families and small businesses to spur savings, investment and job creation.


Reduced tax rates, including the creation of a new 10 percent tax bracket, for every American who pays income taxes

Increased the child tax credit to $1,000 by 2010

Reduced the marriage penalty beginning in 2005

Phased out the death tax Increased education tax benefits

Expanded pension and saving opportunities
II. JOB CREATION AND WORKER ASSISTANCE ACT (Signed into law on March 9, 2002)

Provided 30-percent bonus depreciation for business investment in new equipment

Provided emergency tax relief to New York and other areas affected by the terrorist attacks of September 11, 2001

Accelerated income tax rate reductions effective January 1, 2003

Expanded the10 percent bracket effective January 1, 2003

Increased the child credit to $1,000 effective January 1, 2003

Reduced the marriage penalty effective January 1, 2003

Quadrupled small business expensing from $25,000 to $100,000

Increased bonus depreciation for businesses to 50 percent through 2004

Reduced the top tax rate on dividends and capital gains to 15 percent
Repealing these laws would result in an immediate tax increase on American families and businesses. For example, if none of the President's tax relief had been enacted, in 2004:

111 million Americans would pay, on average, $1,586 more in taxes;

81 million women would pay, on average, $1,878 more in taxes;

49 million married couples would pay, on average, $2,602 more in taxes;

43 million families with children would pay, on average, $2,090 more in taxes;

11 million single women with children would pay, on average, $921 more in taxes;

14 million elderly individuals would pay, on average, $1,883 more in taxes;

25 million small businesses would pay, on average, $3,001, more in taxes; and

Nearly 5 million individuals and families who currently have no income tax liability would become subject to the income tax.
The cumulative benefit of these three laws for family budgets and business investment is significant. Under these laws, last year:

A family of four earning $40,000 saw tax relief of $1,933;

25 million small business owners saved an average of $2,853; and

26 million investors saved an average of $798 from lower rates on dividends and capital gains, including 7 million seniors who will save an average of $1,088.
The cumulative effect on the economy is just as strong, laying the groundwork for increased economic growth and job creation. According to the Department of the Treasury, by the last quarter of 2003, the tax relief had:

Reduced the unemployment rate by nearly 1 percentage point below where it would have been otherwise;

Increased the jobs available to Americans by as many as 2 million; and

Increased real GDP by as much as 3 percent. President Bush has called on Congress to act now to make this tax relief permanent.
Failure to permanently extend these tax cuts would dramatically increase the burden on American taxpayers in future years:

In 2005, the increased child credit, additional marriage penalty relief, and expanded 10-percent bracket will sunset, increasing the tax burden on a family of four earning $40,000 by $915;

In 2006, allowable small business expensing will shrink from $100,000 to just $25,000, increasing the cost of capital investments for America's small businesses;

In 2009, the top tax rate on dividends will increase from 15 to 35 percent, while the tax on capital gains will climb from 15 to 20 percent, raising the tax burden on retirees and families investing for their future; and

In 2011, the rate relief, new 10-percent tax bracket, death tax repeal, marriage penalty relief, and all the remaining tax relief enacted over the past three years will sunset, resulting in tax increase for every American man or woman who pays income taxes.


12 Feb 04,, 22:35
They still need to be alot lower. :-(