For Immediate Release
Office of the Press Secretary
April 15, 2004
Fact Sheet: Millions of American Families Are Benefiting from the President's Tax Relief
Presidential Action
On Tax Day, President Bush addressed taxpayers in Des Moines,
Iowa, where he discussed how tax relief has contributed to the
growing strength of the economy and called on Congress to make his tax
cuts permanent.
Figures released by the Treasury Department demonstrate the real
benefits of the President's tax relief for all Americans on Tax Day.
- As a result of the 2001 and 2003 tax cuts, Treasury expects a
record number of taxpayers to receive refunds this year.
- Due to
the tax relief, the average refund so far this year has been almost
$2,100.
- The Treasury Department estimates that these higher
refunds and lower tax payments mean taxpayers will retain an extra $50
billion when they file their taxes for 2003.
Background - The President's Tax Relief is Benefiting Millions of
American Families
As a result of the President's Economic Growth and Tax Relief
Reconciliation Act of 2001 and Jobs & Growth Tax Relief Reconciliation
Act of 2003, every taxpayer who paid income taxes will get tax relief
this year.
- 109 million American taxpayers will see their taxes decline
by an average of $1,544.
- A family of four earning $40,000 will
receive tax relief of $1,933.
- Nearly 5 million individuals and
families will see their income tax liabilities completely eliminated.
- 42 million families with children will receive an average tax cut
of $2,067.
- 13 million elderly individuals will receive an
average tax cut of $1,795.
- 25 million small business owners will
save an average of $2,853.
- 26 million investors will save an
average of $798 from lower rates on dividends and capital gains,
including 7 million seniors who will save an average of $1,088.
- Low-income families will also benefit from provisions that make the
child credit refundable for more families and reduce marriage
penalties.
President Bush has called on Congress to act now to prevent tax
increases. If Congress does not act, failure to extend these tax cuts
permanently would raise taxes on American taxpayers in future years:
- In 2005, 94 million taxpayers would face, on average, a tax
increase of $538.
- 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, the small business expensing limit 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, small business expensing, and all the
remaining tax relief enacted over the past three years will sunset,
resulting in tax increases for every individual American man or woman
who pays income taxes.
The tax relief proposed and signed into law by President Bush was
the right action at the right time for our economy. President
Bush's tax relief has helped millions of American families and
businesses and continues to drive job creation.
- Without the President's tax relief, by the end of last year
real GDP would have been more than 3 percent lower and the unemployment
rate would have been more than 1 percentage point higher, with more
than 2 million fewer Americans working.
- Real after-tax incomes
are up 10% since December 2000, substantially higher than after the
last recession. The President's tax relief is an important component
of that increase.
The impact of the President's economic program, including the tax
relief, can be seen throughout the economy.
- Job creation is accelerating, with more than 750,000 jobs
created in the last seven months. Meanwhile, the unemployment rate
remains below its average for the 1970s, 1980s, and 1990s.
- Economic growth in the second half of 2003 was near a 20-year high.
- Buoyed by the return of the stock market and strong home values,
household wealth is at a record high.
- Retail sales excluding
motor vehicles are currently growing at the fastest quarterly rate in
over 20 years.
- Homeownership is at an all-time high -- 68.6
percent -- with substantial gains among minority homeowners.
America has a choice: It can continue to grow the economy and
create new jobs as the President's polices are doing; or it can
raise taxes on American families and small businesses, hurting economic
recovery and future job creation. A pro-growth economic agenda, a
strong education system, and help for American workers to gain the
skills to secure good jobs are the right ways to respond to the
challenges of our growing and changing economy.
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