Fact Sheet: Strengthening America's Economy
Today's Presidential Action
- President Bush met with small business owners at the White House today to discuss his plan to grow the economy and create new jobs. His jobs and growth plan - including incentives to invest, reductions in their tax burden, and the elimination of the double taxation of dividends - will help small businesses to grow and create more jobs.
- As Americans file their income tax returns, the President encouraged Congress to provide the tax relief necessary to grow our economy and create jobs. The President has proposed $726 billion in tax relief to create 510,000 new jobs this year and a total of 1.4 million new jobs by the end of next year. Congress passed a budget ensuring that $550 billion of that amount can pass Congress with a simple majority vote using expedited procedures. The President will work with Congress to ensure that the final package is at least that size and contains all the elements of his plan -- so the economy can grow and create as many new jobs as possible. The President will not be satisfied until everyone looking for work can find it.
- During the Congressional recess, more than 25 Administration officials will be participating in at least 60 events in over 40 cities in 26 states as part of an effort to inform the American people about the President's jobs and economic growth plan.
The President's Plan for Jobs & Economic Growth
The President's jobs and economic growth plan will strengthen the economy by allowing Americans to keep more of their own money to spend, save, and invest-creating jobs. The President's plan calls for speeding up the tax relief already passed in 2001; ending the unfair double taxation of dividends; and giving small businesses new incentives to grow.
The President's proposal would provide:
- Across the board tax rate reductions that would show up in every taxpayer's paycheck soon after Congress passes his plan;
- Accelerated relief from the marriage penalty for working couples;
- An increase in the child tax credit from $600 to $1,000 per child. Families would get that extra $400 per child for 2003 in a check mailed to them weeks after the bill is signed.
- An end to the unfair double taxation of dividends. This provision will spur investment that is vital for creating new jobs; in fact, it is estimated to create nearly one-third of the new jobs that will result from the President's plan. It will especially benefit seniors who receive half of all taxable dividend income in America. Experts say it will also give the stock market a much needed boost, benefiting everyone who owns a 401(k) or other investment account.
- Incentives for small businesses to grow. Small businesses-America's engines of job creation-will greatly benefit under the President's plan, which triples the amount they can write off on the purchase of new equipment such as computers and machinery.
Under the President's proposal to speed up tax relief, 92 million taxpayers would receive, on average, a tax cut of $1,083 in 2003. Americans in the lowest tax brackets would receive the largest percentage reduction in their tax burden.
- 46 million married couples would receive an average tax cut of $1,716.
- 34 million families with children would receive from an average tax cut of $1,473.
- 6 million single women with children would receive an average tax cut of $541.
- 13 million elderly taxpayers would receive an average tax cut of $1,384.
- 23 million small business owners would receive tax cuts averaging $2,042.
- 3 million moderate-income families would see their income tax burden eliminated entirely.
A family of four with an income of $40,000 would see their federal income taxes fall from $1,178 to $45 under the President's plan.
35 million American households that currently receive dividend income would directly benefit from the President's proposal to eliminate the double taxation of dividends.
- 26 million taxpayers would receive an average tax cut of $704 in 2003 under the dividend provision.
- 9 million seniors would receive an average tax cut of $991 in 2003 on their dividend income.
- More than 40 percent of people who receive dividends make under $50,000 a year - and three-fourths make less than $100,000 a year.
- By eliminating the double taxation of dividends for 35 million stockholders, the President's plan would provide $20 billion in tax relief this tax year alone - resulting in higher levels of economic output and job creation starting this year.
A married couple, both aged 65, with income of $40,000 (of which $2,000 is dividends and $15,000 is Social Security benefits) would see their taxes decline under the President's growth package by $380 (from $930 to $550) in tax year 2003 ? a decline of 41 percent.
Upcoming Administration Action to Promote the President's Jobs and Growth Plan
During the Congressional recess, members of the Bush Administration are traveling across the country to meet with workers, business leaders, seniors, investors and other Americans to discuss the President's agenda for jobs and economic growth.
- Treasury Secretary John Snow: The Secretary is making stops in Indianapolis, New Orleans, and Shreveport, Louisiana on a two-day tour April 14-15th. The Secretary is meeting with local economic officials, small business owners, individual investors, business leaders, and seniors to discuss the importance of the President's Jobs and Growth plan.
- Secretary of Labor Elaine Chao: Secretary Chao is in Chicago today to deliver remarks to the City Club of Chicago. She will travel to New Orleans on April 24th to deliver the keynote address at the Heritage Foundation Annual Resource Bank.
- Commerce Secretary Don Evans: The Secretary will travel to Charleston, West Virginia tomorrow, where he will deliver remarks to the Chamber of Commerce and tour a local small business. He will travel to Kalamazoo, Michigan on April 21st for remarks to the Kalamazoo Chamber of Commerce. Secretary Evans will be in Pennsylvania the next day for a business roundtable in Pittsburgh and a discussion about the dividend provision with seniors in Harrisburg. On April 23rd, the Secretary will ring the opening bell at the New York Stock Exchange. He will travel to the west coast on April 28th to tour a job training facility in Portland, Oregon and deliver remarks to the Newspaper Association of America in Seattle, Washington.
- Secretary of Housing and Urban Development Mel Martinez: The Secretary is in Tampa, Florida today for an event with Florida taxpayers.
- Secretary Ann Veneman: Secretary Veneman is discussing the President's growth plan and its benefits for America's farmers on national radio from USDA today.
- Energy Secretary Spencer Abraham: The Secretary is participating in a small business forum in Orlando, Florida today. Small Business Association Administrator Hector Barreto: Administrator Barreto is in Providence, Rhode Island today to meet with 400 small business owners and visit an award-winning small business.
George W. Bush, Fact Sheet: Strengthening America's Economy Online by Gerhard Peters and John T. Woolley, The American Presidency Project https://www.presidency.ucsb.edu/node/280759