[Public Papers of the Presidents of the United States: GEORGE W. BUSH (2001, Book I)]
[May 26, 2001]
[Pages 582-584]
[From the U.S. Government Publishing Office www.gpo.gov]
Remarks on Congressional Action on Tax Relief Legislation
May 26, 2001
Well, thank you all very much for joining me here at the people's
house on this historic occasion. I asked all of you to join me here to
be able to publicly thank the Members of the House and the Senate for
working so diligently to give Americans another important reason to
celebrate this holiday weekend.
I first want to thank House Speaker Dennis Hastert and Senate Majority Leader Trent Lott for their strong and effective leadership, leadership
that was instrumental in delivering significant tax relief for the
American people. I thank the incoming majority leader of the Senate, Tom
Daschle, for working with us to schedule
today's vote promptly. I very much appreciate Senator Daschle's
willingness to allow the will of the majority of the Senate to prevail,
even though he, himself, did not agree.
I thank all the members of the conference committee, especially
Chairman Chuck Grassley and Chairman
Bill Thomas, Senator Max Baucus and Senator John Breaux, who
worked tirelessly to make tax relief a reality. I also want to
especially thank Don Nickles, Phil Gramm, Olympia Snowe, and House
Majority Leader Dick Armey and all who
helped make tax relief possible. And while I'm thanking people, I want
to thank all those who voted aye, and so do the taxpayers of America.
Today, for the first time since the landmark tax relief championed
20 years ago by President Ronald Reagan, and 40 years ago by President
John F. Kennedy, an American President has the wonderful honor of
letting the American people know significant tax relief is on the way.
What is especially significant about the tax relief passed by the
United States House and Senate today is that it cuts income taxes for
everyone who pays them. Nothing could be more profound, and nothing
could be more fair. No more wondering whether you're targeted in or
whether you meet all the fine print requirements to qualify for one
special tax break or another. No, this tax relief is straightforward and
fair. If you pay income taxes, you get relief.
And for this year's first installment of the tax cut, the check will
literally be in the mail. Late this summer and into the fall, every
single American who pays income taxes will receive a check. Single
taxpayers will receive a check of $300. Single parents who are heads of
household will receive a check of $500. And married couples will receive
a check of $600.
That immediate tax relief will provide an important boost at an
important time for our economy. And what is more is you can feel
comfortable using it because more tax relief is on the way. The checks
are the first installment of lasting, long-term reductions in tax rates.
As a result, when this tax relief plan is fully implemented, a typical
family of four will see their taxes cut by about half.
The check you will receive in the mail represents your benefit from
the newest lowest rate, which drops from 15 percent to 10 percent.
Starting in July and continuing next January, the Federal Government
will begin reducing the amount it withholds from paychecks to reflect
the first phase of new and lower tax rates.
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Ultimately, tax rates will be reduced from the current 28 to 25,
from 31 down to 28, from 36 to 33, and from 39.6 to 35 percent. Over the
next 10 years, the child credit will double from last year's $500 per
child to $600 per child this year to $1,000 by the year 2010. The
marriage penalty will be dramatically reduced, and the unfair death tax
will be completely abolished by the year 2010.
This tax relief helps all taxpayers. It especially helps those at
the low end of the economic ladder. It helps American workers by letting
them keep more money. And it helps small businesses, so that family-
owned restaurants and startup software companies can hire more workers
and provide more jobs for Americans. The tax relief package honors
marriage and family by reducing the unfair marriage penalty and doubling
the credit for children. It does away with one of the most unfair
aspects of the Tax Code, a death tax that taxes earnings when you make
them, the interest when you save them, and one more time when you die.
As many of you know, throughout my campaign I met tax families all
across the country, diverse people from all walks of life who
represented the hopes and dreams of American families. Joining us today
is one of those families, the Petersons, Paul
and Deborah and Juliette and Sarah Kate. They
work hard. Paul works during the day at
Ukrop's Supermarket in downtown Richmond, Virginia. At night he's
working on an MBA at Avery College. Deborah
works at home caring for their daughters. The Peterson family was here
last February when the prospects for tax relief were not exactly what
they were--like they are today.
Well, Paul and Deborah, I'm delighted to let you know that your family will
receive $800 in tax relief this year--600 from the check and another 200
from the immediate increase in the child credit.
I have even more good news for the Petersons and folks like them all
across America. When you were here in February, we calculated that your
ultimate tax savings would be $1,100 a year. Well, when all aspects of
the plan are phased in, you will receive not $1,100 a year but $1,700 a
year. That is 1,700 more dollars for this good family to spend on their
children and on their dreams. I'm confident about one thing: These good
folks can spend the $1,700 better than the Federal Government can.
Tax relief was the right thing to do and it is the responsible thing
to do for the American people and for our economy.
I once again thank and applaud the Members of Congress, both
Republicans and Democrats, who joined together to get results on behalf
of the American people. The tax relief package that was voted on today
was agreed on last night, after this week's change in the balance of
power in the United States Senate. And it can be a model for the work
that is ahead. Tax relief was based on important principles, principles
that are compassionate and conservative and principles that were
preserved during the legislative process of give-and-take.
We listened to the voices of those in my party and in the Democratic
Party who wanted additional help for those at the lowest end of the
economic ladder. We listened, and as a result, this plan has even more
help for lower income Americans. The earned-income credit is expanded
for low-income married couples, and the child credit is refundable for
parents, providing the most help for those who earn between $10,000 and
$25,000 a year.
We acted on principle. We worked together to build consensus and to
get results. This is significant, and this is only the beginning. The
Peterson family and families like them all across America need more than
just a tax cut. The Petersons want us to work together to improve public
education, strengthen their retirement security, modernize Medicare, and
strengthen and modernize our national defenses.
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Again, thanks to the Members of Congress. I hope you enjoy your
Memorial Day recess. And then, let's work together to complete the great
progress we are making on legislation to improve America's public
schools.
Again, I want to thank you all for coming. This is an historic day.
It explains the art of the possible. It shows what can happen when good
people come together with the intention of doing what's right for the
American people. And we have done right by the American people today.
God bless you.
Note: The President spoke at 3:08 p.m. in the East Room at the White
House.