For Immediate Release
Office of the Press Secretary
January 10, 2004
Fact Sheet: President Bush Urges Congress to Make Tax Cuts Permanent
Today's Presidential Action
- During his weekly radio address, President Bush called upon Congress to make his tax cuts permanent and discussed his plan to create jobs in America and ensure a full economic recovery.
- As 2004 begins, America's economy is strong and getting stronger. More Americans than ever own their homes. More businesses are investing. Indicators of manufacturing activity are higher than at any time during the last 20 years, as was economic growth in the third quarter of 2003. Stock market wealth has increased by more than $3
trillion over the past year. Because of the continuing effects of
President Bush's tax relief, workers will continue to keep more of what
they earn in the future, and small businesses will be better able to
invest and grow. The President's policies are helping to put the
economy on a path to sustained growth and job creation, but we cannot
rest until the recovery is complete.
- Over the past three years, President Bush has proposed and signed into law three separate tax relief measures, resulting in the significant reduction in tax burdens for millions of American families and
businesses. Failure to permanently extend the President's tax cuts
would dramatically increase the burden on American taxpayers in future
years. For example:
- 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 $922.
- 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.
- 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 a tax
increase for every American man or woman who pays income taxes.
- Efforts to repeal this tax relief would result in an immediate
increase in taxes on these same families and businesses. For example,
if none of the President's tax relief had been enacted, this April
15th:
- 109 million American taxpayers would see their tax burden increase by an average of $1,544;
- Nearly 5 million individuals and families who currently have no income tax liability would become subject to the income tax;
- A family of four earning $40,000 would have a tax increase of $1,933;
- 48 million married couples would receive an average tax increase of $2,588;
- 42 million families with children would receive an average tax
increase of $2,067;
- 10 million single women with children would see an average tax
increase of $869;
- 13 million elderly individuals would receive an average tax increase
of $1,795;
- 25 million small business owners would incur tax increases of $2,853; and
- Taxes on dividends and capital gains would increase an average of
$798 for 26 million investors, including seven million seniors who
would see average tax increases of more than $1,088.
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