[Congressional Record (Bound Edition), Volume 152 (2006), Part 7]
[Senate]
[Pages 8816-8817]
[From the U.S. Government Publishing Office, www.gpo.gov]




                    CELEBRATING PROGROWTH TAX POLICY

  Mr. FRIST. Madam President, we will be closing in a few moments, but 
I did want to comment on an event this week that in many ways 
celebrates the progrowth tax policy that President Bush initiated over 
5 years ago, and which, with the 2001 and 2003 tax cuts, tax relief, 
and the relief of regulatory burden, has resulted in quite remarkable 
growth in our economy over the last 18 months.
  This week in the Rose Garden the President signed into law the Tax 
Increase Prevention and Reconciliation Act of 2005. The bill represents 
a real victory for the American people, for each and every American 
family, and for the continued strength and vibrancy and resilience of 
an economy that leads the world.
  The Republican majority has worked hard to resist efforts to raise 
taxes, and that is exactly what this bill accomplished. It was 6 years 
ago, back in 2000, that the President inherited an economy that was in 
recession. It was emerging from a bursting Internet bubble, and the 
answer to our economic malaise at the time was tax relief, was tax 
cuts. There was a lot of opposition on the floor of the Senate, but we 
got them through; sometimes by just a few votes, but we got them 
through. Now, because of the President's firm, fiscally bold vision and 
strong fiscal and tax leadership, our economy is doing very well. 
America's families now feel better off because, indeed, they are better 
off.
  We now have cut taxes for nearly 100 billion hard-working citizens. 
New home sales were up nearly 14 percent just last month, and minority 
home ownership is at its highest level ever. Consumer confidence is the 
highest since May of 2002. The economy has created 5.3 million jobs. 
Unemployment is down to 4.7 percent, lower than the average of the 
1990s, lower than the average of the 1980s, and lower than the average 
of the 1970s. The tax cuts on capital gains and dividends are 
benefiting Americans across the income spectrum.
  It is interesting that if you look at the income tax returns each 
year that are reporting capital gains and dividends, almost half of 
them come from households with reported adjusted gross income of less 
than $50,000. Tax relief, capital gains, and dividends go across the 
economic spectrum.
  Overall, the economy has enjoyed 18 consecutive quarters of economic 
growth. Meanwhile, all of this spurred growth has filled the tax 
coffers just as anticipated, just as we said it would. As we argued 
back then, and as history has demonstrated, cutting taxes actually 
results in increased tax revenues.
  In January, the Congressional Budget Office found that the tax cuts 
on capital gains and dividends resulted in the Government collecting an 
additional $26 billion in revenue in 2004 and 2005. This year, tax 
revenues will be 29 percent higher than they were in 2003 as a result 
of tax cuts. In fact, the Treasury Department reported last week that 
this year's tax revenues were the second highest in American

[[Page 8817]]

history, giving the country a significant surplus for the month.
  Last November, we called for extending the alternative minimum tax 
relief. In February I insisted that Congress keep rates low on capital 
gains and dividends. Last week, as part of the Tax Increase Prevention 
Act, we delivered because we always remember that tax dollars are the 
people's money, not the government's money.
  We believe open markets and abundant opportunity unleashes our 
greatest resource: the energy of the American people and the ingenuity 
of the American people. Keeping taxes low helps Americans find and keep 
jobs, it boosts the family budget, and makes America a great place to 
do business. It allows the entrepreneur to take a chance on that great 
idea, to reinvest, to hire more workers, to create jobs. As 
Republicans, we believe in encouraging that creative and optimistic 
spirit. It is what has built this country. It is what makes America 
great.
  We will continue to champion economic growth and fiscal 
responsibility. We will continue to keep America moving forward.

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