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PHOTO: President Bush Speaks to Joint Session of CongressThe President's Budget & Tennessee

The President’s Budget funds America’s priorities, provides the largest debt reduction in history and provides fair and responsible tax relief. In Tennessee, the budget:

CheckBenefits more than 372,000 Tennessee small businesses and entrepreneurs by reducing marginal tax rates and making the Research & Development tax credit permanent.

CheckProvides tax relief for roughly 1.9 million Tennessee citizens who pay taxes.

CheckProvides relief for an estimated one million Tennessee married couples by reducing the Marriage Penalty.

CheckProvides relief for an estimated 541,000 Tennessee families by doubling the Child Tax Credit.

CheckIncreases Tennessee’s education funding over current levels to more than $699 million to give local schools more tools to ensure that no child is left behind.

CheckIncreases Tennessee’s Head Start funding over current levels to more than $109 million to better prepare Tennessee’s children for success in school.

CheckIncreases funding to more than $484 million in housing assistance and services for low-income Tennessee citizens.

CheckProvides more than $48.6 million in funding for water resource projects along Tennessee’s rivers and waterways.

CheckProvides more than $42 million to fund Tennessee’s environmental protection efforts.

CheckProvides more than $ 7.7 million to help conserve Tennessee’s natural resources – a 365% increase over current levels just for Tennessee.

CheckProvides an estimated $654 million in highway funding for Tennessee.

CheckProvides $391 million for programs and grants to help local fire departments and emergency services in Tennessee and all across America with training, equipment, and fire fighting and lifesaving efforts.

CheckProvides a $5.6 billion National Emergency Reserve to aid Tennessee and other states nationwide struck by disasters.

CheckIncreases Tennessee’s funding over current levels to more than $7.9 million to help more Tennessee children awaiting adoption find loving homes faster.

The President’s Budget Funds Important Priorities for Tennessee:

CheckImproving Education. Provides the Education Department with the largest percentage spending increase of any federal department (11.5% or $4.6 billion) and triples funding for children’s reading programs.

CheckProtecting Social Security. Locks away every penny of the $2.6 trillion Social Security surplus for Social Security.

CheckPreserving Medicare. Spends every dime of Medicare receipts over the next 10 years only for Medicare, increases funding over the next year by $21 billion, and modernizes Medicare with an integrated prescription drug benefit.

CheckStrengthening Defense. Improves quality of life of our troops and their families and begins the transition to a 21st century force.

CheckImproving Healthcare. Doubles funding for NIH medical research on important health issues like cancer, the largest funding increase in NIH history. Creates more than 1,200 new community health centers nationwide to make health care more accessible.

CheckProtecting the Environment. Fully funds the Land and Water Conservation Fund – a $900 million commitment, with more than $7.7 million targeted for Tennessee’s conservation efforts; gives the EPA the second highest operating budget ever -- $3.7 billion, with more than $42 million targeted for Tennessee’s environmental efforts; and increases funding for the EPA $56 million above the amount requested by President Clinton.

Tennessee Will Benefit from the President’s Historic Debt Reduction:

CheckThe President’s Budget provides the fastest, largest debt reduction in history and reduces the debt to its lowest share of the economy since World War I, which will benefit Tennessee citizens in many important ways.

  • Lower government debt means lower interest rates on Tennessee citizens’ home mortgages, car loans, credit cards and other expenses.

  • Future generations of Tennessee citizens will not be burdened with repaying our debt obligations.

Fair and Responsible Tax Relief for all Tennessee Taxpayers:

CheckProvides the typical family of four in Tennessee paying income taxes $1,600 in tax relief.

CheckAn estimated 1.9 million Tennessee taxpayers stand to benefit by the new, lowered rate structure.

CheckAn estimated 372,000 Tennessee small businesses and entrepreneurs stand to benefit from the tax cut.

Check1 in 5 taxpaying families with children will no longer pay any income tax at all – completely removing 6 million American families from the tax rolls.

CheckA family of four in Tennessee making $35,000 a year will receive a 100% federal income tax cut.

CheckA family of four in Tennessee making $50,000 a year will receive a 50% tax cut – receiving at least $1,600.

CheckA family of four in Tennessee making $75,000 a year will receive a 25% tax cut.

CheckThe marginal income tax rate on low-income families will fall by more than 40%.