May 16, 2001
Administration supports House passage of H.R. 1836 as a positive step
on the way to passage of the President's tax relief plan. By reducing
marginal tax rates, this bill would reduce the penalty on work, savings,
and investment, begin the process of providing much needed immediate
tax relief to the American people, and lay a foundation for further
long-term economic growth.
No one should be forced to pay more than a third of what they earn in taxes. In fact, 77 percent of the tax relief associated with cutting the top rate in H.R. 1836 would go to small business owners and entrepreneurs - the engines of growth in our economy.
The Administration looks forward to working with Congress through the legislative process to achieve a result that best embodies the objectives and priorities of the President's plan.
Any law that would reduce receipts is subject to the pay-as-you-go requirements of the Balanced Budget and Emergency Deficit Control Act. Accordingly, H.R. 1836 or any substitute amendment in lieu thereof, that would also reduce revenues, will be subject to the pay-as-you-go requirement. The Administration will work with Congress to ensure that any unintended sequester of spending does not occur under current law or the enactment of any other proposals that meet the President's objectives to reduce the debt, fund priority initiatives, and grant tax relief to all income tax paying Americans.