The Bush Line: President Bush's Record of Cutting Taxes

George W. Bush ^ | September 17, 2004

[RWR8189]

"Another drag on our economy is the current tax code, which is a complicated mess -- filled with special interest loopholes, saddling our people with more than six billion hours of paperwork and headache every year. The American people deserve -- and our economic future demands -- a simpler, fairer, pro-growth system. In a new term, I will lead a bipartisan effort to reform and simplify the federal tax code."

-President Bush, 9/2/04

President Bush's Agenda For A Fairer, Simpler Tax Code

Making the Tax Code Fairer, Simpler, and Pro-Growth.  President Bush will work with Congress to make the tax code simpler for taxpayers, encourage saving and investment, and improve the economy's ability to create jobs and increase wages.

Making Tax Relief Permanent. Many of the tax cuts - including the new, low 10 percent tax bracket, the reduction in the marriage penalty, the doubling of the child tax credit, the phase-out of the death tax, and the increase in small business expensing - are set to expire. This tax relief must be made permanent so families and businesses can plan for the future with confidence.

If The Tax Cuts That Expire After 2004 Are Not Extended For 2005:

• 94 million taxpayers would pay, on average, a tax increase of $538.
• 46 million married couples would pay, on average, an additional $906 in taxes.
• 38 million families with children would incur an average tax increase of $902.
• 11 million elderly taxpayers would pay, on average, an additional $383 in taxes.
• 23 million small business owners would incur tax increases averaging $784.
• Nearly 2 million individuals and families who currently have no income tax liability would become subject to the income tax.  ("Millions of Individuals and Families are Benefiting from Tax Relief Plan," Treasury Department Press Release, 4/9/04) 

The President Has Reduced Income Taxes For All Americans Who Pay Them

The President's Tax Relief Is Proving Real Benefits To Millions Of American Taxpayers.  This Year: 

• 111 million individuals and families will receive an average tax cut of $1,586 in 2004 because of the tax cuts of 2001 and 2003.
• 49 million married couples will have an average tax cut of $2,602.
• 43 million families with children will receive an average tax cut of $2,090.

• 14 million elderly individuals will see their taxes fall, on average, by $1,883.
• 25 million small business owners will receive an average tax cut of $3,001.  ("Millions of Individuals and Families are Benefiting from Tax Relief Plan," Treasury Department Press Release, 4/9/04)  

The President's 2001 Tax Relief:

• Reduced tax rates, including a new 10 percent tax bracket, for every American who pays income taxes.
• Increased the child tax credit to $1,000 by 2010.
• Reduced the marriage penalty beginning in 2005.
• Phased out the death tax.
• Increased education tax benefits.
• Expanded pension and saving opportunities.  ("Millions of Individuals and Families are Benefiting from Tax Relief Plan," Treasury Department Press Release, 4/9/04)  

The President's 2003 Tax Relief:

• Accelerated income tax rate reductions effective January 1, 2003.
• Expanded the10 percent bracket effective January 1, 2003.
• Increased the child credit to $1,000 effective January 1, 2003.
• Reduced the marriage penalty effective January 1, 2003.
• Quadrupled small business expensing from $25,000 to $100,000.
• Increased bonus depreciation for businesses to 50 percent through 2004.
• Reduced the top tax rate on dividends and capital gains to 15 percent.  ("Millions of Individuals and Families are Benefiting from Tax Relief Plan," Treasury Department Press Release, 4/9/04)  

President Bush's Pro-Growth Policies Are Working

The Economy Has Posted Job Gains For Each Of The Last Twelve Months - Creating Nearly 1.7 Million Jobs Over The Past 12 Months.

The National Unemployment Fell To 5.4 Percent In August.  This is down 0.9 percentage point from a peak of 6.3% in June 2003 and the lowest rate since October 2001.  At 5.4 percent, the unemployment rate is below the average of the 1970s, 1980s, and 1990s.  It is also the same as the average for 1996, when President Clinton was seeking reelection.

Real After-Tax Incomes Are Up By Nearly 10 Percent Since December 2000.  This is substantially better than the comparable time period in the previous business cycle.  Since the President’s 2001 and 2003 tax cuts, personal consumption levels have risen substantially. 

[sheltonmac]

No mention of a "fairer, simpler" government spending policy?

[CitizenUSA]

Here's a new concept for President Bush: How about cutting government spending and reducing the federal budget in addition to handing back some of our money? What good are tax cuts when the federal government grows unchecked? Call it "compassionate conservatism" if you wish, but it sure looks like big government to me.

[Willie Green]

CBO Projects $442 Billion Deficit
FEDERAL DEFICIT REALITY-U.S. Treasury Shows Actual 2003 Federal Deficit at $3.7 Trillion
Bush's "Ownership Society" Already Doomed by his Trade Policies

[CitizenUSA]

Thanks for the links. I find it absolutely amazing that so many professed conservatives are thrilled about the prospects of a Bush reelection.

I can understand a desire to see Kerry lose. Even the Demoncats are probably aware at some level that Kerry isn't presidential material. He's a third-rate senator with a less-than-stellar record from one of the smallest states in the union. No matter how much the liberal establishment attempt to anoint him, they just can't make the man seem big enough for the biggest job in the country.

On the other hand, you have President Bush. Even though he's been a great commander in chief, he's a big government guy through and through. As the only viable (electable) candidate who pays at least some lip service to his conservative base, he's the best person to vote for this November. However, don't think for an instant that we'll actually get a smaller government in the process.

[ThinkDifferent]

No mention of a "fairer, simpler" government spending policy?

Right. I'm with Milton Friedman; tax cuts are ultimately meaningless if not accompanied by spending cuts. All they do is move the burden from today's taxpayers to tomorrow's.

[Penner]

The Economy Has Posted Job Gains For Each Of The Last Twelve Months - Creating Nearly 1.7 Million Jobs McJobs Over The Past 12 Months.