The White House
President George W. Bush
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For Immediate Release
Office of the Press Secretary
February 9, 2004

Fact Sheet: Tax Relief Is Strengthening Our Economy

TODAY'S PRESIDENTIAL ACTION:

BACKGROUND ON TODAY'S PRESIDENTIAL ACTION

In the past three years, President Bush has proposed and signed into law three bills reducing the tax burden on American families and small businesses to spur savings, investment, and job creation.

  1. ECONOMIC GROWTH AND TAX RELIEF RECONCILIATION ACT (Signed into law on June 7, 2001)
    • Reduced tax rates, including a new 10 percent tax bracket, for every American who pays income taxes
    • Increased the child tax credit to $1,000 by 2010
    • Reduced the marriage penalty beginning in 2005
    • Phased out the death tax
    • Increased education tax benefits
  2. JOB CREATION AND WORKER ASSISTANCE ACT (Signed into law on March 9, 2002)
    • Provided 30-percent bonus depreciation for business investment in new equipment
    • Provided emergency tax relief to New York and other areas affected by the terrorist attacks of September 11, 2001
  3. JOBS AND GROWTH TAX RELIEF RECONCILIATION ACT (Signed into law on May 28, 2003)
    • Accelerated income tax rate reductions effective January 1, 2003
    • Expanded the10 percent bracket effective January 1, 2003
    • Increased the child credit to $1,000 effective January 1, 2003
    • Reduced the marriage penalty effective January 1, 2003
    • Quadrupled small business expensing from $25,000 to $100,000
    • Increased bonus depreciation for businesses to 50 percent through 2004
    • Reduced the top tax rate on dividends and capital gains to 15 percent

Repealing these laws would result in an immediate tax increase on American families and businesses. For example, if none of the President's tax relief had been enacted, in 2004:

The cumulative benefit of these three laws for family budgets and business investment is significant. Under these laws, last year:

The cumulative effect on the economy is just as strong, laying the groundwork for increased economic growth and job creation. According to the Department of the Treasury, by the last quarter of 2003, the tax relief signed by President Bush had:

President Bush has called on Congress to act now to make this tax relief permanent. Failure to permanently extend these tax cuts would dramatically increase the burden on American taxpayers in future years:


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