Proposal to cut $726 billion in taxes, including an end to the double taxation of dividend income, passed by bi-partisan House vote on Friday.
WASHINGTON -Friday morning, the U.S. House voted to approve its version of President Bush\’s $726 billion economic stimulus tax relief plan. This plan, while cutting wasteful governmental spending, will put more money in the hands of the American people and help jumpstart the slowed economy.
Critics see this as a major victory for President Bush over not only hoards of nay-saying Democrats, but so-called moderates in his own party. The $726 billion tax cut is the frontrunner of the President\’s domestic policy agenda, and Republican and Democratic representatives in the House commended the tax cut, citing that it compels Congress to act both promptly and fiscally responsibly.
"It is encouraging to see such solid support from the House for the President\’s proposed tax cut," commented taxpayer advocate Grover Norquist, who heads Americans for Tax Reform (ATR) in Washington, D.C. "Critics say dividend taxes soak the rich, but over 50% of seniors receive dividend income and over 70% of voters in the last election own stocks. Those critics have missed a monumental change in the American electorate. The message: Don\’t soak the investor class," he continued.
The bill is still being considered by the U.S. Senate, and awaits full debate on the Senate floor. Senate sponsors referenced the need to reform Congressional spending. The costs of programs such as Medicare and education spending, where many of the proposed cuts will be made, have spiraled out of control with little, if any, positive results. By cutting unnecessary spending, these programs will be compelled to become more efficient and achieve positive results.
"The size of government grows exponentially every year," continued Norquist. "A favorable tax plan, such as the one proposed, will curtail unnecessary governmental growth and put more money in the hands of taxpayers. With the uncertainty of war removed and a less tax burdened electorate our economy will thrive."