December 8, 2005
JS-3041

Statement of Secretary John W. Snow
On the Passage of H.R. 4297 – Tax Relief
Extension Reconciliation Act of 2005

"I commend the House of Representatives on passage of this bill, which is critical to sustaining our economic recovery and creating jobs.  It would encourage investment and innovation--the lifeblood of the American economy.   Lower tax rates on savings and investment have benefited millions of Americans of all income levels either directly – through lower taxes on investment returns – or indirectly through new and better jobs and greater economic security for families.

"With half of all U.S. households owning stock and the President's fiscal policies showing robust economic results, it is critically important that we not raise tax rates on capital gains and dividends. I encourage the Senate to follow suit and extend these good policies. To do otherwise would be to undermine strong economic growth that has created 4.5 million new jobs since tax relief was enacted in 2003.

"Additionally, I am pleased that the bill includes the expansion of Section 179 expensing for small business and an extension of many of the expiring provisions included in the President's Budget such as the R&D credit."