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Tax Relief Does Work!

 
April 11, 2002

It's that time of year again! Tax day is right around the corner and although we all dread having to fill out our tax return forms, President George W. Bush has hopefully made this day a little easier for some through numerous tax relief measures. Last summer, Congress passed the largest tax cut in twenty years in hopes of making this year's financial strain less for individuals and families.

 

Even as a candidate for President, George Bush said that tax relief would be one of his priorities because the effect would be two-fold. First, the American people had been "over-charged" for years by the federal government and it was time that they got some of their money back. The average family has been spending more on taxes than on food, clothing and shelter combined. However, according to the U.S. Department of Treasury, 104 million individuals and families have received or are receiving over $1000 in tax relief as a direct result of the provisions that were signed into law last summer. This Administration believes that the folks who earn the money know how to spend it better than the bureaucrats in Washington.

 

The second function of President Bush's tax relief plan was to give our economy a much-needed boost. As a result of putting more money into people's pockets, we make sure that new jobs are created and lay-offs are kept at bay. Last summer's rebate checks returned $36 billion to the economy. Looking back over this last year, many economists are saying these tax rebates kept our economy from a "real" recession. In February, the Chairman of the Federal Reserve Board, Alan Greenspan said, "the tax cuts of last year did show up as increased expenditures in July and August "they turned out to be quite effective." Economists are now predicting a four percent growth rate for the first quarter of this year due to increased personal growth and a rise in consumer spending.

 

Additional tax relief provisions helped America's working families. An estimated 25 million taxpayers benefited immediately from the elimination of the marriage penalty tax. A $10,000 tax credit for adoptions was also signed into law, along with an increase in the per child tax credit from $500 to $600 (this will eventually double in amount). The unfair "inheritance tax," has also been addressed, even though I am hopeful we will do more to permanently "kill" the "death tax."

 

Tax relief was not just a campaign promise; it is a reality this year for many Americans. President Bush and this Congress worked together to make a real difference in people's lives by putting money back into their pocket and shortening the economic recession. I am not only proud to stand with this President as he leads the world in the fight against terrorism, but I am also honored to be a part of the legislative agenda that allows him to lead this great nation with a sound, conservative public policy.

 

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