[Weekly Compilation of Presidential Documents Volume 37, Number 22 (Monday, June 4, 2001)]
[Pages 816-817]
[Online from the Government Publishing Office, www.gpo.gov]

<R04>
Remarks on Passage of the ``Economic Growth and Tax Relief Reconciliation Act of 2001''

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.
    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.

[[Page 817]]

    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.
    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.