For Immediate Release
Office of the Press Secretary
February 19, 2004
President Bush Urges Congress to Make Tax Cuts Permanent
Presidential Action
President Bush called on Congress to make his tax cuts permanent
and discussed with taxpayers his plan to create jobs in America and to
continue to grow and strengthen the economy.
New figures released by the Treasury Department demonstrate the
real benefits of the President's tax relief for all Americans.
- Last July and August when tax relief checks went out, families
with children received up to $400 per child -- in all, 24 million
families received tax relief totaling $14 billion.
- The 2003 tax
relief will also be felt this spring, as the Treasury Department
estimates that Americans will receive an extra $50 billion in higher
refunds and lower tax payments for the 2003 tax year when they file
their taxes on April 15th.
- For the 2004 tax year, 111 million
families will save an average of $1,586 because of the tax relief, a
total of $176 billion in additional tax relief.
The President's Tax Relief is Working
America's economy is strong and getting stronger. More Americans than
ever own their homes. More businesses are investing. Indicators of
manufacturing activity are the highest in the last two decades, and
economic growth in the second half of 2003 was the highest in almost 20
years. Stock market wealth has increased by more than $4 trillion over
the past 12 months, and more than 365,000 jobs have been added in the
last five months. 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
every American who wants to work can find a job.
Over the past three years, President Bush has proposed and signed into
law three separate tax relief measures, resulting in significant tax
relief for millions of American families and businesses. Failure to
extend the President's tax cuts permanently 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 shrink, 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 tax 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 increases for every American man or woman who pays
income taxes.
The cumulative effect of tax relief on the economy has been strong,
laying the groundwork for increased economic growth and job creation.
According to the Treasury Department, by the last quarter of 2003, the
tax relief signed by President Bush 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.
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