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RYAN, WAYS AND MEANS COMMITTEE TO MARKUP TAX RATE REDUCTION PLAN

WASHINGTON – As a member of the House Ways and Means Committee, First District Congressman Paul Ryan today will participate in the markup of pivotal tax relief legislation. The plan – the Economic Growth and Tax Relief Act of 2001 – scheduled for markup today before the Ways and Means Committee is the first tax relief legislation to move through the House of Representatives in this Congress.

Prior to the markup, Ryan said: “I’m anxious to get started because the work we do today will bring us a step closer to making tax relief a reality. The sooner we act on reducing tax rates for everyone, the better it will be for the economy and for those who are suffering as a result of the recent economic slowdown."

Ryan added: “It’s only fair that, after protecting Social Security and Medicare and working to pay down the available public debt, we return the bulk of the tax surplus back to taxpayers. After all, it is taxpayers’ money, not Washington’s.”

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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