|Office of Management and Budget||Print this document|
May 17, 2001
Administration supports Senate passage of S. 896 as another positive
step on the way to bringing much needed tax relief to the American
people. The Administration commends the authors of the RELIEF Act
for their leadership.
The bill begins to lay a foundation for further long-term economic growth, through the inclusion of four key elements of the President's Tax Cut Plan: reducing current income tax rates, including a new low 10 percent rate; eliminating the death tax; increasing the child tax credit from $500 to $1,000 per child and applying the credit to the Alternative Minimum Tax (AMT); and reducing the marriage penalty. The bill also begins the process of providing much needed immediate tax relief.
However, the Administration believes more tax relief is needed for small business owners and entrepreneurs - the engines of growth in the Nation's economy - who pay the top rates. Moreover, to increase incentives for investment and encourage economic growth, the Administration believes the reductions in the marginal tax rates should be phased in more quickly.
The Administration remains committed to the core principles of providing income tax relief to Americans, reducing the tax penalty on work, saving, and investment, and putting money back into the pockets of American consumers as quickly as possible. The Administration will work together with the Congress as the legislative process continues to achieve a final result that best embodies the priorities and 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, S. 896 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 the 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.