Contact: Rob Ostrander or Shana Stribling 202.224.5721
Tuesday, May 30, 2006

SPRINGFIELD, MO – U.S. Senator Kit Bond today hosted an economic roundtable in Springfield, part of a statewide swing on Congress’ tax relief plan recently signed into law. Bond stressed this tax relief plan will help build a stronger Missouri by preventing tax hikes, spurring economic growth and creating jobs.

“This economy continues to grow and create jobs. Job growth remains strong and more Americans are going to work each day. In the last three years, nearly 5.3 million jobs have been created. These gains are not by luck or accident. We are seeing the result of tax cuts enacted by Congress that allow families to keep more of what they earn. To keep the economy moving forward, Congress needs to continue to support pro-growth policies and resist raising taxes,” said Bond.

A few weeks ago, Congress passed, and the President signed into law, an extension of the massive tax relief enacted in 2001 and 2003. This tax relief is now benefiting everyone who is married, who has a child, or who owns a small business or family farm. Bond pointed out that Missouri taxpayers are reaping the benefits. According to the Treasury Department, more than 2 million Missouri taxpayers now pay lower taxes, 650,000 married Missouri couples paid less this year as a result of elimination of the marriage penalty, and 541,000 tax filers with children paid less as a result of a doubling in the per child tax credit.

“That’s not just tax relief. It is real money in a family’s pocket for groceries, car payments, and utilities,” said Bond. “For business owners, it is money they can reinvest to grow their businesses rather than sending to Uncle Sam.”

Bond said numbers released by the Bureau of Labor Statistics, combined with other economic indicators, signal a healthy and growing economy, indicating the tax relief plan is working. Recent reports show that more than 5.2 million jobs were created since August 2003 and the economy has shown 32 consecutive months of job growth. Also, the United States has a 4.7 percent unemployment rate, the lowest rate in the last four decades. Missouri is following the nation’s trend, with 82,200 jobs created in Missouri since December 2003 and an unemployment rate that dropped to 4.5 percent in March 2006.

Despite naysayers’ predictions that tax relief would mean revenue loss, Bond pointed out that the tax relief plan is boosting revenue and reducing the deficit. Last year, tax revenues grew by $274 billion, a 15 percent increase over the previous year and the Treasury Department reports the highest annual tax receipts ever.

Bond stressed that while it is business owners that create jobs, the government can help create the conditions for business to flourish: by promoting low taxes, less litigation, a sane regulatory environment, and modern transportation options. Despite the economic impact of 9/11, two wars, a stock market bubble and energy price spikes, this economy remains healthy. In order to keep the economy growing, Congress needs to continue to support pro-growth policies and resist raising taxes, Bond insisted.