Fact Sheet: Millions of American Families Are Benefiting from the President's Tax Relief
On Tax Day, President Bush addressed taxpayers in Des Moines, Iowa, where he discussed how tax relief has contributed to the growing strength of the economy and called on Congress to make his tax cuts permanent.
Figures released by the Treasury Department demonstrate the real benefits of the President's tax relief for all Americans on Tax Day.
- As a result of the 2001 and 2003 tax cuts, Treasury expects a record number of taxpayers to receive refunds this year.
- Due to the tax relief, the average refund so far this year has been almost $2,100.
- The Treasury Department estimates that these higher refunds and lower tax payments mean taxpayers will retain an extra $50 billion when they file their taxes for 2003.
Background - The President's Tax Relief is Benefiting Millions of American Families
As a result of the President's Economic Growth and Tax Relief Reconciliation Act of 2001 and Jobs & Growth Tax Relief Reconciliation Act of 2003, every taxpayer who paid income taxes will get tax relief this year.
- 109 million American taxpayers will see their taxes decline by an average of $1,544.
- A family of four earning $40,000 will receive tax relief of $1,933.
- Nearly 5 million individuals and families will see their income tax liabilities completely eliminated.
- 42 million families with children will receive an average tax cut of $2,067.
- 13 million elderly individuals will receive an average tax cut of $1,795.
- 25 million small business owners will save an average of $2,853.
- 26 million investors will save an average of $798 from lower rates on dividends and capital gains, including 7 million seniors who will save an average of $1,088.
- Low-income families will also benefit from provisions that make the child credit refundable for more families and reduce marriage penalties.
President Bush has called on Congress to act now to prevent tax increases. If Congress does not act, failure to extend these tax cuts permanently would raise taxes on American taxpayers in future years:
- In 2005, 94 million taxpayers would face, on average, a tax increase of $538.
- In 2005, the increased child credit, additional marriage penalty relief, and expanded 10-percent bracket will shrink, increasing the tax burden on a family of four earning $40,000 by $915;
- In 2006, the small business expensing limit will shrink from $100,000 to just $25,000, increasing the cost of capital investments for America's small businesses;
- In 2009, the top tax rate on dividends will increase from 15 to 35 percent, while the tax on capital gains will climb from 15 to 20 percent, raising the tax burden on retirees and families investing for their future; and
- In 2011, the tax rate relief, new 10-percent tax bracket, death tax repeal, marriage penalty relief, small business expensing, and all the remaining tax relief enacted over the past three years will sunset, resulting in tax increases for every individual American man or woman who pays income taxes.
The tax relief proposed and signed into law by President Bush was the right action at the right time for our economy. President Bush's tax relief has helped millions of American families and businesses and continues to drive job creation.
- Without the President's tax relief, by the end of last year real GDP would have been more than 3 percent lower and the unemployment rate would have been more than 1 percentage point higher, with more than 2 million fewer Americans working.
- Real after-tax incomes are up 10% since December 2000, substantially higher than after the last recession. The President's tax relief is an important component of that increase.
The impact of the President's economic program, including the tax relief, can be seen throughout the economy.
- Job creation is accelerating, with more than 750,000 jobs created in the last seven months. Meanwhile, the unemployment rate remains below its average for the 1970s, 1980s, and 1990s.
- Economic growth in the second half of 2003 was near a 20-year high.
- Buoyed by the return of the stock market and strong home values, household wealth is at a record high.
- Retail sales excluding motor vehicles are currently growing at the fastest quarterly rate in over 20 years.
- Homeownership is at an all-time high -- 68.6 percent -- with substantial gains among minority homeowners.
America has a choice: It can continue to grow the economy and create new jobs as the President's polices are doing; or it can raise taxes on American families and small businesses, hurting economic recovery and future job creation. A pro-growth economic agenda, a strong education system, and help for American workers to gain the skills to secure good jobs are the right ways to respond to the challenges of our growing and changing economy.
George W. Bush, Fact Sheet: Millions of American Families Are Benefiting from the President's Tax Relief Online by Gerhard Peters and John T. Woolley, The American Presidency Project https://www.presidency.ucsb.edu/node/282158