|
President Bush Calls on Congress to Make Tax Relief Permanent
- President Bush traveled to Cedar Rapids, Iowa, to visit with workers who are benefiting from the tax relief plan proposed by the President and passed by the Congress. The Economic Growth and Tax Relief Reconciliation Act of 2001 that President Bush signed into law provides a tax cut for all families who pay Federal income taxes - helping to strengthen our economy by giving Americans more money to spend.
- President Bush also called on Congress to make his tax relief plan permanent - to ensure that Americans can make long-term plans when saving for their children's education, when planning for retirement and when planning to pass their assets on to their children.
Background on Tax Relief
- When President Bush's tax relief plan is fully phased-in:
- Over 100 million individuals and families will pay lower taxes;
- 43 million married couples will see their taxes reduced on average by more than $1,700 a year;
- 38 million families with children will receive an average tax cut of almost $1,500;
- 11 million single mothers with children will be able to keep, on average, $770 more of their income to care for their children;
- 13 million seniors will see their taxes reduced, on average, by $920;
- 3.9 million taxpayers, including 3 million taxpayers with children, will have their income tax liability completed eliminated by the President's tax cut; and
- Small business owners and entrepreneurs will receive 79% of the tax relief associated with reducing the top income tax rates to 33% and 35%. And, nearly 75% (22.6 million) of the 30.5 million taxpayers with income from flow-through entities (e.g., owners of sole proprietorships, farm proprietorships, partnerships, S corporations and taxpayers with rental income) will receive a tax reduction.
|