KEEP THE ECONOMY GROWING
August 14, 2006
In 2001 and 2003, President Bush fought hard for major tax cuts and Congress passed the Jobs and Growth Tax Relief and Reconciliation Act of 2003. The Republican-led plan cut income tax rates across the board, expanded the size of the lowest tax bracket, reduced the marriage penalty and increased the child tax credit, says Senator Kay Bailey Hutchison.
These tax cuts halted the downturn of our economy, she says. Consider:
- Over the last three years, tax receipts have increased nearly 35 percent and the stimulus is continuing.
- In 2005, America had the largest single rise in tax revenue in its history -- $274 billion dollars.
- Over 5 million jobs have been created since August 2003 and the economy has grown for 18 consecutive quarters.
- Unemployment is 4.8 percent, lower than the 20-year historical average of 5.6 percent.
- The United States is ahead of schedule to meet Bush's goal of cutting the deficit in half by 2009.
Unfortunately, says Hutchison, the tax relief provided in the 2001 and 2003 tax cuts was not permanent:
- In 2011, the top dividends tax rate will return to 39.6 percent.
- Capital gains tax will again climb to 20 percent.
- Income tax cuts, the repeal of the death tax and marriage penalty relief will also disappear.
Allowing these cuts to expire would erase years of economic growth and pass along an unfair financial burden to millions of hardworking Americans who form the backbone of the U.S. economy, she says.
Source: Sen. Kay Bailey Hutchison, "Keep the economy growing; keep the Bush tax cuts," Dallas Morning News, August 14, 2006
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