March 8, 2001
Administration supports House passage of H.R. 3 as a very positive
first 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.
The Administration looks forward to working with Congress through the legislative process to achieve a result that best embodies the objectives 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. 3 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.