For Immediate Release
Office of the Press Secretary
May 26, 2001
Remarks by the President after Passage of the Tax Plan
The East Room
3:08 P.M. EDT
THE PRESIDENT: Thank
you. Please be seated. Well, thank you all very
much for joining me here at the people's house on this historic
occasion. I asked all of you to join me here to be able to
publicly thank the members of the House and the Senate for working so
diligently to give Americans another important reason to celebrate this
holiday weekend.
I first want to thank House Speaker Dennis
Hastert and Senate Majority Leader Trent Lott for there strong and
effective leadership -- leadership that was instrumental in delivering
significant tax relief for the American people. I thank the
incoming Majority Leader of the Senate, Tom Daschle, for working with
us to schedule today's vote promptly. I very much appreciate Senator
Daschle's willingness to allow the will of the majority of the Senate
to prevail, even though he, himself, did not agree.
I thank all the members of the conference
committee, especially Chairman Chuck Grassley and Chairman Bill Thomas,
Senator Max Baucus and Senator John Breaux, who worked tirelessly to
make tax relief a reality. I also want to especially thank
Don Nickles, Phil Gramm, Olympia Snowe, and House Majority Leader Dick
Armey, and all who helped make tax relief possible. And
while I'm thanking people, I want to thank all those who voted
aye. And so do the taxpayers of
America. (Applause.)
Today, for the first time since the landmark
tax relief championed 20 years ago by President Ronald Reagan, and 40
years ago by President John F. Kennedy, an American President has the
wonderful honor of letting the American people know significant tax
relief is on the way.
What is especially significant about the tax
relief passed by the United States House and Senate today is that it
cuts income taxes for everyone who pays them. Nothing could
be more profound, and nothing could be more fair. No more
wondering whether you're targeted in, or whether you meet all the fine
print requirements to qualify for one special tax break or
another. No, this tax relief is straightforward and fair --
if you pay income taxes, you get relief. (Applause.)
And for this year's first installment of the
tax cut, the check will literally be in the
mail. (Applause.) Late this summer and into the
fall, every single American who pays income taxes will receive a
check. Single taxpayers will receive a check of
$300. Single parents who are heads of household will receive
a check of $500. And married couples will receive a check of
$600.
That immediate tax relief will provide an
important boost at an important time for our economy. And
what is more is you can feel comfortable using it because more tax
relief is on the way. (Applause.) The checks are the first
installment of lasting, long-term reductions in tax
rates. As a result, when this tax relief plan is fully
implemented, a typical family of four will see their taxes cut by about
half. (Applause.)
The check you will receive in the mail
represents your benefit from the newest lowest rate, which drops from
15 percent to 10 percent. Starting in July and continuing next
January, the federal government will begin reducing the amount it
withholds from paychecks to reflect the first phase of new and lower
tax rates.
Ultimately, tax rates will be reduced from the
current 28 to 25; from 31 down to 28; from 36 to 33; and from 39.6 to
35 percent. Over the next 10 years, the child credit will
double, from last year's $500 per child to $600 per child this year, to
$1,000 by the year 2010. The marriage penalty will be
dramatically reduced. And the unfair death tax will be
completely abolished by the year 2010. (Applause.)
This tax relief helps all
taxpayers. It especially helps those at the low end of the
economic ladder. It helps American workers by letting them
keep more money. And it helps small businesses, so that
family-owned restaurants and start-up software companies can hire more
workers and provide more jobs for Americans.
The tax relief package honors marriage and
family by reducing the unfair marriage penalty and doubling the credit
for children. It does away with one of the most unfair
aspects of the tax code -- a death tax, that taxes earnings when you
make them, the interest when you save them, and one more time when you
die.
As many of you know, throughout my campaign, I
met tax families all across the country -- diverse people from all
walks of life who represented the hopes and dreams of American
families. Joining us today is one of those families -- the
Petersons, Paul and Deborah, and Juliette and Sarah
Kate. (Applause.)
They work hard. Paul works during
the day at Ukrops Supermarket in downtown Richmond,
Virginia. At night he's working on an MBA at Avery
College. Deborah works at home, caring for their
daughters. The Peterson family was here last February, when
the prospects for tax relief were not exactly what they were -- like
they are today.
Well, Paul and Deborah, I'm delighted to let
you know that your family will receive $800 in tax relief this year --
$600 from the check and another $200 from the immediate increase in the
child credit.
I have even more good news for the Petersons,
and folks like them all across America. When you were here
in February, we calculated that your ultimate tax savings would be
$1,100 a year. Well, when all aspects of the plan are phased
in, you will receive not $1,100 a year, but $1,700 a year.
(Applause.) That is $1,700 more for this good family to
spend on their children and on their
dreams. (Applause.) I'm confident about one thing
-- these good folks can spend the $1,700 better than the federal
government can. (Applause.)
Tax relief was the right thing to do, and it
is the responsible thing to do, for the American people and for our
economy.
I, once again, thank and applaud the members
of Congress, both Republicans and Democrats, who joined together to get
results on behalf of the American people. The tax relief
package that was voted on today was agreed on last night, after this
week's change in the balance of power in the United States
Senate. And it can be a model for the work that is
ahead. Tax relief was based on important principles --
principles that are compassionate and conservative, and principles that
were preserved during the legislative process of give-and-take.
We listened to the voices of those in my party
and in the Democratic Party who wanted additional help for those at the
lowest end of the economic ladder. We listened, and as a
result, this plan has even more help for lower-income
Americans. The earned income credit is expanded for
low-income married couples, and the child credit is refundable for
parents, providing the most help for those who earn between $10,000 and
$25,000 a year.
We acted on principle. We worked
together to build consensus and to get results. This is
significant -- and this is only the beginning. The Peterson
family, and families like them all across America, need more than just
a tax cut. The Petersons want us to work together to improve
public education, strengthen their retirement security, modernize
Medicare, and strengthen and modernize our national defenses.
Again, thanks to the members of
Congress. I hope you enjoy your Memorial Day
recess. And then, let's work together to complete the great
progress we are making on legislation to improve America's public
schools.
Again, I want to thank you all for
coming. This is an historic day. It explains the art of the
possible; it shows what can happen when good people come together with
the intention of doing what's right for the American
people. And we have done right by the American people
today. God bless you. (Applause.)
END 3:20 P.M. EDT
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