President Bush last week 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 last week 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 ¡V 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.