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FOR IMMEDIATE RELEASE
May 23, 2003
CONTACT: Kevin Schweers

SENATE PASSES TAX RELIEF BILL TO CREATE JOBS, SPUR ECONOMY
Includes $1.2 Billion for Texas, Hutchison Proposal to End Marriage Penalty

WASHINGTON, DC -- U.S. Senator Kay Bailey Hutchison (R-TX) today praised final passage of the Jobs and Growth Tax Relief Reconciliation Act of 2003, saying it would "boost Texas' economy and put people back to work."

"At a time when too many Americans are unemployed, this bill will provide a much needed shot in the arm, especially for small businesses which create two-thirds of the new jobs in the United States," Senator Hutchison said.

"The Texas legislature is grappling with a paralyzing budget crisis. Help is on the way. I'm very pleased to have been part of the group that worked on the state aid package," Senator Hutchison said, referring to the $1.2 billion allocated for Texas, including more than $500 million for Medicaid and an estimated $700 million for essential government services and unfunded mandates. "I hope this legislation will alleviate problems in our state," she added.

The $350 billion tax relief package, which will now be sent to the president for his signature, contains key provisions introduced by Senator Hutchison, including marriage penalty relief and lower taxes on dividends. The legislation will:

  • Accelerate the 2001 tax cuts for individuals and small businesses, including reducing marginal rates, erasing the marriage penalty and expanding the 10 percent bracket.
  • Reduce taxes on dividends paid to shareholders and on capital gains from the sale of stocks and other assets, to a maximum 15 percent.
  • Speed up tax breaks for families by increasing the child tax credit from $600 to $1,000.
  • Help small businesses create jobs by increasing expensing and depreciation levels.
  • Send $20 billion in aid to states over the next two years.

"This legislation addresses fundamental unfairness in our tax code, including the egregious marriage penalty and the double taxation of dividends," Senator Hutchison said. "Penalizing couples for saying 'I do' and layering tax upon tax on dividend income burdens hard working Americans and the elderly. I'm pleased Congress has taken a major step in correcting these inequities."

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