| The
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.
Pay-As-You-Go
Scoring
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.
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