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Keeping the U.S. economy strong remains one of my top priorities. I believe that with increased spending by the American people and actions by Congress over the last few years to reduce the financial burden of taxes for families across the nation, our economy is regaining its full strength and vitality. After suffering an economic downturn in June of 2000 and the attacks of September 11, 2001, we responded as a nation, in 2002, with one of the largest tax cuts in our nation's history, which leading economists have stated led to an economic rebound making the last recession one of the shortest and shallowest in American history. The American economy rebounded with striking success. Congress acted again to create needed jobs for Americans by passing H.R.2, the Jobs and Growth Reconciliation Act of 2003. This legislation gave virtually every tax paying American needed relief. The tax cut provided a 96% reduction in taxes for a family of four earning $40,000 a year. This dramatic benefit complemented the following additional important and sometimes overlooked provisions.
91 million taxpayers received an average tax cut of $1,126; 23 million small business owners saw tax relief of over $2,000;
Six million single women with children received an average tax cut of $558;
12 million elderly taxpayers received an average tax cut of $1,401;
Three million low-income individuals and families saw their income tax eliminated;
Families saw an additional $400 increase to complete a $1,000 child tax credit, including reimbursement checks;
26 million taxpayers with dividend and capital gains income saw an average tax cut of $800.
In the 109th Congress I am working to ensure that these tax cuts are made permanent. With my support, Congress voted to extend many of these tax cuts and, on May 17, 2006, the President signed the Tax Increase Prevention and Reconciliation Act into law. Thi simportant tax relief package continues the reduced dividend and capital gains tax rates. It also increases the threshold of the Alternative Minimum Tax thereby entirely removing fifteen million Americans from its reach. We in the 109th Congress still have important work to do. Continuation of the death tax repeal, the marriage penalty elimination, and the continuation of the 10% Income tax bracket are some of the most important tax issues still facing Congress.
Tax relief helped pull the American economy from a debilitating recession. In fact, since the tax cuts passed in 2003, the economy has rebounded beyond expectations. The Treasury Department reports that in the past three years, 5.2 million new jobs have been created while real wages have risen. The current unemployment rate is 4.7% - lower than the average of any decade since the 1960s. Homeownership rates are also high. Today, more Americans own their own homes than at any other time in our history. All economic indicators show that the tax cuts are working. Contrary to the gloom-and-doom predictions of some, the tax cuts have resulted in spending cuts to vital government programs like Social Security or Medicare. In fact, the increased investment and job creation have combined to increase revenue to the Treasury over the past three years. That tax cuts help the wealthy at the expense of the rest of America is simply untrue. As the years since the tax cuts have demonstrated, we must not abondon the very reforms that delivered such positive results for America.
I remain confident in America's economic future. The strength of our economy is due to the dedication of hard working Americans. Our best hope for avoiding deficits and ensuring healthy federal budgets in the future is to free individual Americans, as much as possible, to continue with the entrepreneurial spirit of this innovative nation. Surpluses are created by a productive America -- not by Washington levying more and more taxes.
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