FROM THE OFFICE OF PUBLIC AFFAIRS

April 14, 2005
JS-2377

FACT SHEET: Millions of American Families Are Benefiting from Tax Relief

"No one looks forward to tax day, but for millions of taxpayers across the country, this April 15 will be less painful thanks to the President's tax cuts. Nationwide, 110 million taxpayers will see their tax bill reduced thanks to the tax relief supported by President Bush and enacted by Congress. That extra money in the hands of America's families has helped to fuel the economic recovery. Now, to continue this period of economic growth, we must make tax relief permanent so families can plan ahead for the future. We must also reform the tax code to make it simpler, fairer and more growth oriented."
-- Secretary of the Treasury John Snow

Background: The President's Tax Relief is Benefiting Millions of American Families
As a result of the President's Economic Growth and Tax Relief Reconciliation Act of 2001, the Jobs & Growth Tax Relief Reconciliation Act of 2003, and the Working Families Tax Relief Act of 2004 every taxpayer who paid income taxes will get tax relief this year.

• 110 million American taxpayers will see their taxes decline by an average of $1,716.
• A family of four earning $40,000 will receive tax relief of $1,985.
• Over 5 million individuals and families will see their income tax liabilities completely eliminated.
• 44 million families with children will receive an average tax cut of $2,300.
• 14 million elderly individuals will receive an average tax cut of $1,879.
• 25 million small business owners will save an average of $3,235.
• 24 million investors will save an average of $947 from lower rates on dividends and capital gains, including 7 million seniors who will save an average of $1,231.
• Low-income families will also benefit from provisions that make the child credit refundable for more families and reduce marriage penalties.

President Bush has called on Congress to act now to prevent tax increases. If Congress does not act, failure to extend these tax cuts permanently would raise taxes on American taxpayers in future years:

• In 2006, the small business expensing limit will shrink from $100,000 to just $25,000, increasing the cost of capital investments for America's small businesses;
• In 2009, the top tax rate on dividends will increase from 15 to 35 percent, while the tax on capital gains will climb from 15 to 20 percent, raising the tax burden on retirees and families investing for their future; and
• In 2011, the tax rate relief, new 10-percent tax bracket, death tax repeal, marriage penalty relief, small business expensing, and all the remaining tax relief enacted over the past few years will sunset, resulting in tax increases for every individual American man or woman who pays income taxes.

The economy is stronger today because of the timely tax relief measures enacted during President Bush's administration. The success of the President's economic program, including tax relief, can be seen throughout the economy.

• Economic growth has averaged more than 4 percent during the last two years.
• The economy has generated 2.1 million net new jobs in the year ending March 2005 and more than 3 million since May 2003, when the last tax relief package was enacted.
• At 5.2 percent, the unemployment rate remains below its average of the 1970s, 1980s, and 1990s.
• Real after-tax incomes are up more than 12 percent since December 2000, and are up more than 3 percent in the last year alone.
• Aided by a recovering stock market and strong home values, household wealth is at a record high.
• Homeownership is at an all-time high at more than 69 percent.