Remarks Upon Signing an Income Tax Reduction Extension Bill

I am signing today a bill which will prevent your withholding taxes from going up tomorrow. Last October, I asked the Congress to reduce Federal income taxes by an additional $10 billion, which would represent a tax saving of more than $225 for a family of four earning $15,000 a year. I also asked the Congress to restrain the growth of Federal spending, an essential step toward balancing the Federal budget.

Now, 9 months later, the response from Congress is typical of their repeated failure to face the issues. The Congress, after waiting until the last possible day, has enacted a 2-month freeze of withholding rates rather than cutting taxes another $10 billion, as I requested.

Furthermore, the Democratic majority has adopted a spending ceiling for the next fiscal year that exceeds my recommendations by $17 billion. These actions by the Democratic Congress are wrong for the people and wrong for our economy.

My proposals would ensure greater prosperity and more and better jobs without inflation. We need greater tax cuts and less Federal spending. The American people should have more control over what they earn rather than the Government constantly dipping further into their pocketbook.

I will continue to press the Congress to enact the comprehensive program of tax and spending reductions that I proposed last October, and I urge all Americans to join me in that effort.

Thank you very much.