Plan reduces income tax rates, eases marriage penalty, death tax

WASHINGTON- President Bush sent Congress his 10-year, $1.6 trillion tax cut proposal today.  In remarks at the Rose Garden, Bush declared that this tax cut package could be the best medicine to help lift a sagging economy:  "A warning light is flashing on the dashboard of our economy and we just can’t drive on and hope for the best," Bush said.

Grover Norquist, president of Americans for Tax Reform, issued the following statement praising the President for having the courage to follow through on his campaign promise:

"Taxpayers should rejoice throughout America today as tax relief is close at hand.  President Bush has kept his word to the American people.  He promised us a tax cut and he is working diligently to deliver on his promise.

"President Bush’s plan is very similar to the plan he built his campaign around: it will reduce income taxes for all Americans, ease the marriage penalty, phase out the death tax, and boost tax breaks for charitable contributions. 

"According to the Congressional Budget Office, the budget surpluses could reach $5.6 trillion over the next decade.  The President has proposed using $2.5 trillion of the surplus for Social Security and debt reduction, leaving approximately $3.1 trillion in surplus.  Of that, the President wants to give back about half, or $1.6 trillion, to taxpayers.  They created the surplus, they should get some of it back. 

"The impact of the tax cut will be far more significant to lower income families than those in higher income brackets.  For example, a family of four with income of $40,000 will get a tax cut of $1,600.  That $1,600 will have a far greater impact on that family’s budget than the tax cut someone earning $100,000 will receive.  That is $1,600 that family can use to purchase clothing, food, and other necessities for their children."

"This tax cut is good for America and we hope Congress will pass it sooner rather than later."