Fact Sheet: Taking Action to Strengthen the Economy
Today's Presidential Action
President Bush traveled to Ohio to discuss the benefits of his jobs and growth plan with local small business owners and workers at the Timken Company in Canton.
The President is working to grow the economy and create the largest number of new jobs possible for America's workers. He has proposed a jobs and economic growth plan that would help create 510,000 new jobs this year and a total of 1.4 million new jobs by the end of next year. The President will not be satisfied until everyone looking for work can find it.
The President called on Congress to act on his economic proposals to help our Nation's entrepreneurs grow their businesses, speed up economic growth, and generate new jobs for American workers. He will work with Congress to ensure that the bill he signs into law contains all the elements of his plan. And because more tax relief will produce more jobs, he will work for a final plan that provides at least $550 billion in tax relief.
Ohioans Benefit from the President's Plan
The President's jobs and growth plan would provide needed tax relief for working families and businesses in Ohio through the acceleration of tax relief already approved by Congress, elimination of the double tax on corporate dividends, and new incentives for businesses to grow. Across the nation, nearly 92 million taxpayers would have lower tax bills under the President's plan thanks to accelerated tax relief and eliminating the double tax on dividends.
Tax Relief: In Ohio alone, nearly 4 million taxpayers would receive relief under the President's plan.
- 3.1 million Ohio taxpayers would benefit from acceleration of 10 percent bracket expansion.
- 1.3 million Ohio families would benefit from acceleration of marriage penalty relief.
- More than 1.1 million Ohio taxpayers would benefit from accelerated reduction of tax rates.
- Nearly 1 million Ohio families would benefit from acceleration of the increase in the child tax credit.
- Ending the Double Tax on Dividends: The double taxation of dividends is unfair, counter-productive and damaging to the economy. The President believes it is fair to tax a company's profits once, but it is unfair to tax that dollar a second time when it is paid out to shareholders. According to the Tax Foundation, ending the double taxation of dividends reduces the tax bill for almost 1.4 million Ohio taxpayers for a total savings of $636 million, or an average $442 per taxpayer with dividend income. Private sector analysts have estimated that the value of the stock market would increase between 5 and 15 percent as a result of this plan. This would benefit everyone in Ohio who owns stock, including owners of 401(k) plans and other retirement accounts. And ending the double tax on dividends will spur investment and create nearly one-third of the new jobs in the President's plan.
- Strengthening Small Businesses and Creating Jobs: The manufacturing sector accounts for 24 percent of Ohio's economy (as measured by gross state product), making it the largest economic sector in the state. When the cost of investment in new equipment and buildings falls because earnings from these investments are taxed only once instead of twice, companies will expand, create new jobs, and increase wages. The tax relief provided by the President's plan would lower the cost of capital by up to 14 percent, making it easier for businesses to expand and grow. And small businesses, the 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. More than 920,000 business taxpayers in Ohio would have tax savings to invest in new equipment, hire additional workers, and increase pay.
For more information on the President's initiatives, please visit www.whitehouse.gov
George W. Bush, Fact Sheet: Taking Action to Strengthen the Economy Online by Gerhard Peters and John T. Woolley, The American Presidency Project https://www.presidency.ucsb.edu/node/280774