WASHINGTON – First District Congressman Paul Ryan today voted in favor of across-the-board tax relief legislation (H.R. 3: the Economic Growth and Tax Relief Act of 2001). This afternoon, the House of Representatives passed this bill by a vote of 230-198. This legislation cuts tax rates for every taxpayer in America and condenses the current five tax brackets into four. The bill is also the first major piece of President Bush's plan for $1.6 trillion in tax relief over the next decade.

 "It’s only fair that, after protecting Social Security and Medicare and working to pay down the public debt, we return the bulk of the tax surplus back to taxpayers," said Ryan. "The non-Social Security surplus represents an overpayment of income taxes. Federal taxes are the highest ever during peacetime. It is this simple: people are overpaying their taxes, and they should get a refund. If this money is not returned to taxpayers, it will be spent on excess government."

Ryan added: "Today the House made a crucial move toward enacting responsible tax relief for all taxpayers. The sooner we reduce tax rates for everyone, the better it will be for those who are suffering as a result of the economic slowdown."

"Real tax relief can help rejuvenate our sluggish economy and protect jobs in Southeastern Wisconsin," said Ryan. "When today's legislation is fully implemented, it will mean about $18 billion in total tax relief for Wisconsin. This is good news for Wisconsin families and the small businesses that serve as engines of job growth."

"Today's tax relief package would mean up to $360 this year for millions of couples and almost $200 for singles this year with more tax relief to come. This makes sense. People should be able to keep more of their own money to help cover household expenses or save for the future."

"Despite what a few critics say," Ryan added, "the President's tax relief plan is actually quite cautious – amounting to 6% of all federal revenues over the next ten years. In other words, for every dollar the government collects, 6 cents will be returned to taxpayers."

The Economic Growth and Tax Relief Act contains key elements of President Bush’s tax relief proposal. Among other things, the legislation:

• Offers immediate tax relief by lowering the current 15 percent tax rate on the first $12,000 of taxable income for couples ($6,000 for singles.) A new 12 percent rate would apply retroactively to the beginning of 2001 and also for 2002. The rate would be reduced further over the next few years, reaching 10 percent in 2006.
•  Reduces other income tax rates and consolidates rate brackets. By 2006, the present structure of five income tax rates (15 percent, 28 percent, 31 percent, 36 percent and 39.6 percent) would be reduced to four rates (10 percent, 15 percent, 25 percent and 33 percent.)

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