May 11, 2006
JS-4255

Statement by Treasury Secretary John W. Snow On Passage of the Tax Increase Prevention and Reconciliation Act

Today's Senate action was essential to avoid a tax increase on American families and America's small businesses, and it was a victory for America's taxpayers. Today's vote, like yesterday's vote in the House, also told the American people who supports lower taxes and who doesn't.

This success is a tribute to Chairman Grassley and the Senate Finance Committee for their hard, painstaking work in making this day possible. Senator Frist is also due congratulations on this day for his leadership on this bill and on the issue of the economy more broadly. In the House, whose vote on preventing tax increases came first, Chairman Thomas and Speaker Hastert are to be commended for their leadership.

This month will mark the third anniversary of the passage of the Jobs and Growth Act.  That legislation, by lowering taxes on American families, small businesses and investors, gave the American economy a much-needed lift and made possible the strong and durable growth we enjoy today.

Since that legislation took effect, the American economy has been on a solid upward path with strong GDP growth, 5.2 million additional jobs, rising real wages and a big turn-around in business investment with equity markets nearing all time highs.

Today, more Americans are working than at any time in our past, more Americans own their own homes, and the unemployment rate at 4.7% is lower than the average of the 1960s, 1970s, 1980s and 1990s.  Labor markets are strong.

This good news is no accident.  It is the direct result of good policy – lower taxes on work, risk-taking and investment – that the Congress put in place three years ago.