Rebate checks, lower marginal tax rates, and increased deductions have combined to help American families keep more of their hard earned money during difficult economic times. These key components of President Bush’s 2001 tax relief plan are providing a vital boost to the nation’s economic recovery, yet the plan remains scheduled to expire in 2010.

Today, Marc Racicot, Chairman of the Republican National Committee, joined the President in calling on Congress to make the tax relief permanent and urged Senate Democrats not to stand in the way of economic recovery and job creation.

“Our families, our workers, and our economy are benefiting today because Congress came together, across party lines, to pass the President’s tax cuts. As the economy begins to recover, now is the time to make these tax cuts permanent.

“Those who stand in the way of tax relief, economic recovery and jobs will be held accountable by voters come November. American taxpayers appreciate tax relief and understand the economic benefits and job creation brought about by the President’s plan. It is time to come together again and make tax relief permanent,” said Chairman Racicot.

Since bipartisan passage of the President's tax relief plan last summer, Democrats have called for both delay and repeal of the plan. For example, Senator Hillary Clinton’s assessment of the President’s tax relief plan:

“I thought Senator Kennedy made a very good argument [concerning repeal of the tax cut]....Well, I favor postponing it.” (Senator Hillary Clinton on CNN’s “Greenfield at Large,” January 17, 2002)

Democrat Opposition to Tax Relief Is Contrary to Views of Nation’s Top Economists

"To provide a secure pillar for long-run economic growth, tax rates should be as low as possible, consistent with financing the necessary function of government. The Bush tax cut was an important step in this direction and, as an added bonus, arrived just in time to help a faltering economy." (Professor Michael J. Boskin, Senior Fellow, Hoover Institute, Stanford University)

“(Federal Reserve Chairman Alan) Greenspan said on Wednesday that last year’s tax cuts were effective in helping the economy recover. ‘They turned out to be quite effective…’” (Reuters, February 28, 2002)

The first phase of across-the-board marginal rate cuts have already taken effect, which means EVERY American who pays Federal income taxes has a lower tax burden come April 15th - allowing them to keep more of their hard earned money.

39.6% to 39.1%
36% to 35.5%
31% to 30.5%
28% to 27.5%

Failing to make the tax relief permanent will have the following effects:

A family of four with an income equivalent to $36,268 in 2002 will face a tax hike of $2,035 in 2011.
Taxes would increase by $963 (relative to extending the President’s tax cut) for a single mother with one child who earns $25,000.
IRA funding limits would shrink by more than 60%; and
Taxes would rise by an average of $1,040 for 104 million taxpayers, including workers, married couples and families with children.
Last fall, American taxpayers received $60 billion in cash rebates because of the Republican tax plan.

Opponents of tax relief used a technical rule in the Senate to force the tax cut to sunset on December 31, 2010. As a result, every taxpayer will be in for a big shock on January 1, 2011, when they are levied with an enormous federal tax increase, as tax levels return to the levels prior to last year’s tax cut law.

We know the Obstructionist Daschle will stand in the way because the Democrats need desparately to make Bush and the GOP seem as ineffectual as possible. First they tried blaming the Recession on him although most people in the finance field saw it start on Clinton's watch. Then they tried blocking his initial tax cut. They kept screaming about him blowing "the surplus." Hello? Surplus? When it comes to taxes, there is no such thing as a surplus. If there is too much money it means that it should go back to the people who paid it! It wasn't their money. But, they want to keep poor people dependent on them. It must really sting to learn that Bush's tax cut actually worked to dig the country out of the slump. God, I hate Democrats. They are such idiots, and they count on and need other idiots to believe that without them, the GOP would screw them. Wrong. The GOP believes in people and wants them to believe in themselves, too. Democrats want people to believe that only the Government can solve their problems. It perpetuates and fosters a sense of dependence. They'll over tax you into the poor house, then, if there is too much of your money laying around, they'll call it a surplus rather than give it back to you. They are constantly crying about how the GOP loves "Big Business" and "the richest 5%" of Americans. We need "Big Business" so we can have jobs. Try working at "Big Enviroment" or "Big Non-Profit" and let me know how that works out for you. Enjoy your Government Cheese. The rest of us will be working at real jobs. Our real job companies need real tax relief so we can keep our real jobs. Of course, without tax relief, our "Big Business" jobs might be cut, which would be good for the Democrats. For it is only then that we may buy into the idea that we should be entitled to things and that we need the government to help us and thus become susceptible to the Democratic ideology. Damn, I hate Democrats.