For Immediate Release
April 15, 2003
Fact Sheet: Strengthening America's Economy
Today's Presidential Action
President Bush met with small business owners at the White House
today to discuss his plan to grow the economy and create new jobs. His
jobs and growth plan - including incentives to invest, reductions in
their tax burden, and the elimination of the double taxation of
dividends - will help small businesses to grow and create more jobs.
As Americans file their income tax returns, the President encouraged Congress to provide the tax relief necessary to grow
our economy and create jobs. The President has proposed $726 billion
in tax relief to create 510,000 new jobs this year and a total of 1.4
million new jobs by the end of next year. Congress passed a budget
ensuring that $550 billion of that amount can pass Congress with a
simple majority vote using expedited procedures. The President will
work with Congress to ensure that the final package is at least that
size and contains all the elements of his plan -- so the economy can grow
and create as many new jobs as possible. The President will not be
satisfied until everyone looking for work can find it.
During the Congressional recess, more than 25 Administration
officials will be participating in at least 60 events in over 40 cities
in 26 states as part of an effort to inform the American people about
the President's jobs and economic growth plan.
The President's Plan for Jobs & Economic Growth
The President's jobs and economic growth plan will strengthen the
economy by allowing Americans to keep more of their own money to
spend, save, and invest-creating jobs. The President's plan calls
for speeding up the tax relief already passed in 2001; ending
the unfair double taxation of dividends; and giving small businesses
new incentives to grow.
The President's proposal would provide:
- Across the board tax rate reductions that would show up in every
taxpayer's paycheck soon after Congress passes his plan;
- Accelerated relief from the marriage penalty for working couples;
- An increase in the child tax credit from $600 to $1,000 per
child. Families would get that extra $400 per child for 2003 in a
check mailed to them weeks after the bill is signed.
- An end to the unfair double taxation of dividends. This provision
will spur investment that is vital for creating new jobs; in fact, it
is estimated to create nearly one-third of the new jobs that will
result from the President's plan. It will especially benefit seniors
who receive half of all taxable dividend income in America. Experts
say it will also give the stock market a much needed boost, benefiting
everyone who owns a 401(k) or other investment account.
- Incentives for small businesses to grow. Small
businesses-America's engines of job creation-will greatly benefit
under the President's plan, which triples the amount they can write off
on the purchase of new equipment such as computers and machinery.
Under the President's proposal to speed up tax relief, 92 million
taxpayers would receive, on average, a tax cut of $1,083 in 2003.
Americans in the lowest tax brackets would receive the largest
percentage reduction in their tax burden.
- 46 million married couples would receive an average tax cut of
$1,716.
- 34 million families with children would receive from an average
tax cut of $1,473.
- 6 million single women with children would receive an average tax
cut of $541.
- 13 million elderly taxpayers would receive an average tax cut of
$1,384.
- 23 million small business owners would receive tax cuts averaging
$2,042.
- 3 million moderate-income families would see their income tax
burden eliminated entirely.
Example:
A family of four with an income of $40,000 would see their federal
income taxes fall from $1,178 to $45 under the President's plan.
35 million American households that currently receive dividend
income would directly benefit from the President's proposal to
eliminate the double taxation of dividends.
- 26 million taxpayers would receive an average tax cut of $704 in
2003 under the dividend provision.
- 9 million seniors would receive an average tax cut of $991 in 2003
on their dividend income.
- More than 40 percent of people who receive dividends make under
$50,000 a year - and three-fourths make less than $100,000 a year.
- By eliminating the double taxation of dividends for 35 million
stockholders, the President's plan would provide $20 billion in tax
relief this tax year alone - resulting in higher levels of economic
output and job creation starting this year.
Example:
A married couple, both aged 65, with income of $40,000 (of which
$2,000 is dividends and $15,000 is Social Security benefits) would see
their taxes decline under the President's growth package by $380 (from
$930 to $550) in tax year 2003 ? a decline of 41 percent.
Upcoming Administration Action to Promote the President's Jobs
and Growth Plan
During the Congressional recess, members of the Bush
Administration are traveling across the country to meet with
workers, business leaders, seniors, investors and other Americans to
discuss the President's agenda for jobs and economic growth.
- Treasury Secretary John Snow: The Secretary is making stops in
Indianapolis, New Orleans, and Shreveport, Louisiana on a two-day tour
April 14-15th. The Secretary is meeting with local economic officials,
small business owners, individual investors, business leaders, and
seniors to discuss the importance of the President's Jobs and Growth
plan.
- Secretary of Labor Elaine Chao: Secretary Chao is in Chicago
today to deliver remarks to the City Club of Chicago. She will
travel to New Orleans on April 24th to deliver the keynote address at
the Heritage Foundation Annual Resource Bank.
- Commerce Secretary Don Evans: The Secretary will travel to
Charleston, West Virginia tomorrow, where he will deliver remarks to
the Chamber of Commerce and tour a local small business. He will travel
to Kalamazoo, Michigan on April 21st for remarks to the Kalamazoo
Chamber of Commerce. Secretary Evans will be in Pennsylvania the next
day for a business roundtable in Pittsburgh and a discussion about the
dividend provision with seniors in Harrisburg. On April 23rd, the
Secretary will ring the opening bell at the New York Stock Exchange. He
will travel to the west coast on April 28th to tour a job training
facility in Portland, Oregon and deliver remarks to the Newspaper
Association of America in Seattle, Washington.
- Secretary of Housing and Urban Development Mel Martinez: The
Secretary is in Tampa, Florida today for an event with Florida
taxpayers.
- Secretary Ann Veneman: Secretary Veneman is discussing the
President's growth plan and its benefits for America's farmers on
national radio from USDA today.
- Energy Secretary Spencer Abraham: The Secretary is participating
in a small business forum in Orlando, Florida today.
Small Business Association Administrator Hector Barreto:
Administrator Barreto is in Providence, Rhode Island today to meet with
400 small business owners and visit an award-winning small business.
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