Tax cut

“ We should cut taxes this year, but they should be the right tax cuts, targeted to working families to help our economy grow—not tax breaks that will help only the wealthiest few while putting our prosperity at risk. Our tax cuts will help send our children to college, help families with members who need long-term care, help pay for child care, and help fund desperately needed school construction. ”

“ Let me remind you what lies at the heart of that liberal budget—a $315 billion tax increase over the next 5 years, falling squarely on the backs of you who work and earn to support your families and pay the government's bills. It's not just a coincidence that that $315 billion they want to raise would require canceling the third year of your tax cut, due in July, and tax indexing. Three-quarters of that tax increase would have to be paid by low- and Middle-income families and many of you who are already living from paycheck to paycheck. ”

“ But to say that the tax cut is, and then they add an interest expense, $1.9 trillion, for example, is as wrong as wrong can be. The tax cut is the amount of money of taxes cut for the American people. And I would just suggest that as people wrestle with this issue, and figure out how to address it, it's a slippery slope, unless people are prepared to ascribe an interest cost to each and every proposal made by Congress, to either spend money or cut taxes. ”

“ We can make our tax laws fairer, we can make them simpler and easier to understand, and at the same time, we can, and we will, reduce the tax burden on American citizens by $25 billion.
The tax reforms and the tax reductions go together. Only with the long overdue reforms will the full tax cut be advisable.
Almost $17 billion in income tax cuts will go to individuals. Ninety-six percent of all American taxpayers will see their taxes go down. For a typical family of four, this means an annual saving of more than $250 a year, or a tax reduction of about 20 percent. ”

“ Without the tax cut, the economy would be far worse. The fact of the matter is, from the estimates of economists -- Democrat, Republican, private-sector, it doesn't matter -- you seldom see such wide-spread agreement against economists that the tax cut is going to provide a boost to the economy, without which there is a strong possibility the nation could go into recession. It's the economy -- it's the tax cut that's holding up and strengthening the economy that's going to enable it to turn around and bring in more revenues. Revenues result from growth, not just from the tax rate structure. ”

“ In order to save our children from a future of debt, we will also end the tax breaks for the wealthiest 2% of Americans. But let me perfectly clear, because I know you’ll hear the same old claims that rolling back these tax breaks means a massive tax increase on the American people: if your family earns less than $250,000 a year, you will not see your taxes increased a single dime. I repeat: not one single dime. In fact, the recovery plan provides a tax cut – that’s right, a tax cut – for 95% of working families. ”

“ About 10 days ago we all kept our rendezvous with the Internal Revenue Service and anted up our income tax. If it'll help ease the pain, let me remind you that in about 2 months, on July 1st, you'll start paying 10 percent less income tax on what you earn.
But that won't mean anything to a growing group of citizens who've already given themselves a tax cut. It's estimated that about $95 billion in income tax is not being paid. That's enough to balance the budget. ”

“ And we also gave tax reductions to most small and new businesses. Before we could do more than that, we first had to bring down the deficit we inherited, and we had to get economic growth up. Now we've done both. And now we can cut taxes in a more comprehensive way. But tax cuts should reinforce and promote our first obligation: to empower our citizens through education and training to make the most of their own lives. The spotlight should shine on those who make the right choices for themselves, their families, and their communities. ”

“ The 1-year reduction for businesses would be in the form of a liberalized investment tax credit increasing the rate to 12 percent for all businesses.
This tax cut does not include the more fundamental reforms needed in our tax system. But it points us in the right direction--allowing taxpayers rather than the Government to spend their pay.
Cutting taxes now is essential if we are to turn the economy around. A tax cut offers the best hope of creating more jobs. Unfortunately, it will increase the size of the budget deficit. ”

“ Right now, Congress can pass a law that would prevent a tax hike on the first $250,000 of everybody’s income. Everybody. That means that 98% of Americans and 97% of small businesses wouldn’t see their income taxes go up at all. And even the wealthiest Americans would get a tax cut on the first $250,000 of their incomes. ”

“ You see, if the Congress moves speedily this summer, most of you are going to be getting a reduction in tax rates starting next year. That's because there's a new bill that's going to drastically overhaul the tax code and reduce the current 14 tax rates to only 2-15 percent and 27 percent. That means 80 percent of the American people will be paying the rate of 15 percent or less. For most of you, that's going to be a significant tax cut. ”

“ Pass this jobs bill, and the typical working family will get a $1,500 tax cut next year. Fifteen hundred dollars that would have been taken out of your pocket will go into your pocket. This expands on the tax cut that Democrats and Republicans already passed for this year. If we allow that tax cut to expire -- if we refuse to act -- middle-class families will get hit with a tax increase at the worst possible time. We can’t let that happen. I know that some of you have sworn oaths to never raise any taxes on anyone for as long as you live. ”

“ I believe our tax rate cuts for the people have done more to spur a spirit of risk-taking and help America's economy break free than any program since John Kennedy's tax cut almost a quarter century ago. ”

“ Next we should give Americans a tax cut. We've already cut taxes for 15 million American working families through our dramatic expansion of the earned income tax credit. This year that tax reduction will be worth about $1,000 to a family of four with an income of $28,000 a year or less. ”

“ Because of what we did, 95 percent of all working families will get a tax cut -- in keeping with a promise I made on the campaign. And I'm pleased to announce that this morning, the Treasury Department began directing employers to reduce the amount of taxes withheld from paychecks -- meaning that by April 1st, a typical family will begin taking home at least $65 more every month. Never before in our history has a tax cut taken effect faster or gone to so many hardworking Americans. ”

“ So the American people have a clear choice in this election. We agree on one thing: Americans do deserve a tax cut. But we must choose between a tax cut that responsibly balances the budget and one that puts our economy at risk; between one that is targeted to help working families pay for education, health care and other pressing needs, and one that is indiscriminate ”

“ No, no, I've never heard -- a tax cut is a tax cut, and that means people have less money to send to the government, more money in their pockets. Any issues addressing withholdings and phase-ins of course, that's a natural issue that people worked out with their employers, to make sure that withholdings are at the adequate level, the level that they are comfortable with. ”

“ According to all accounting in Congress, once you pass a tax cut, that tax cut is permanent law of the land. Same thing with the spending increase; once you increase spending, it is permanent law of the land. So any type of trigger would bring revenues into the federal government, because now that tax cut no longer goes into effect. ”

“ They probably won’t tell you that if you belong to a middle-class family, then I’ve cut your taxes each year that I’ve been in office, and I’ve cut taxes for small business owners seventeen times.
But the thing is, for most Americans like me, tax rates are near their lowest point in fifty years. In 2001 and 2003, the wealthiest Americans received two huge new tax cuts. We were told these tax cuts would lead to faster job growth. Instead, we got the slowest job growth in half a century, and the typical American family actually saw its income fall. ”

“ As you know, President Bush, throughout the campaign when he announced this tax cut, said that this tax cut will also, in addition to other reasons, serve as an insurance policy against any future economic downturns. We're very heartened to see that Chairman Greenspan has weighed in on the importance of cutting taxes to protect the economy, and we hope that the Congress will join President Bush and Chairman Greenspan in cutting taxes, in passing the Bush tax, cut so we can protect the strength of our economy. ”

“ I have even given tax cuts to people who do make higher than the $75,000 or $100,000 or $250,000, when we had a surplus, when I thought it was the fiscally responsible thing to do. Other people can disagree, but this is the first time I am being asked to provide a tax cut for people earning over $1 million with this kind of deficit. ”

“ One of the most interesting things about tax legislation, it's so numerical that you can still have the core principles of what you believe in -- in this case, across-the-board marginal income tax rate cuts, marriage penalty relief, death tax relief, and there are all kinds of ways to look at phase-ins and the periods of time at which things become effective, to implement the same policies over a slower period of time. Which means that the tax cut can be accomplished for less money over a longer period of time. ”

“ The tax cut passed last year remains the biggest tax cut in history. Even with the $99 billion increase, the tax cut over the next 3 years will amount to $335 billion. The savings to the average American family this year is $400 ”

“ Well, I think the President believes that a tax cut should be targeted toward creating jobs and getting the economy moving again. I don't know that there's a magic dry erase board with a center proportion or figure on it somewhere in the White House. The President believes that those tax cuts should go to creating jobs and putting money back into the pockets of people who've seen their wages slide, even as some have done quite well in an economy that is suffering for them. I think that's what the package does. ”

“ Mine will be there when the middle class families need it to help them give their children and education, buy a home, pay for child care. Our opponents' plan gives indiscriminate tax cuts, regardless of the cost. In fact, millions of middle class families with children in college, or with adults in educational programs, would actually get a bigger tax cut under my plan than under our opponents' plan.
And my tax cut is paid for with specific, tough budget cuts consistent with the balanced budget plan. Our opponents haven't said how they'll pay for their tax cut yet. ”

“ Certainly any trigger that is designed to stop a tax cut from going into place would result in a tax hike, according to -- Q But these are all incremental. So if I get so much this year and so much the following year, and then it's frozen, that doesn't take back what I've already gotten. MR. FLEISCHER: One of the greatest effects of a tax cut on the economy is the psychological sign that it sends to people, that it's permanent. No, but it's permanent -- that you know that you will have more money to spend each year. ”

“ I think the most accurate way to measure it is, the tax cut is the amount of taxes that get cut. Spending increases, the amount of spending -- I think it's increased. There is legitimately a third budget item that should be considered, which is the aggregate impact of tax and spending decisions on the interest expenses that government will incur. ”

“ President-elect. Do you still intend to seek income-tax increases for upper-income Americans, and if so, should these Americans expect to pay higher taxes in 2009?
Obama: My tax-plan represented a net tax cut. It provided for substantial middle-class tax cuts: 95% of working Americans would receive them. It also provided for cuts in capital-gains for small businesses, additional tax credits. All of it is designed for job growth. My priority is going to be: how do we grow the economy, how do we create more jobs. ”

“ And he continues to urge the Senate to take action so the tax cut can be the right size, so the American people can have a doubled child credit, can have the death tax repealed, can have across-the-board income tax rate cuts for all income taxpayers. ”

“ Well, there are other people, of course, that will be listened to in the tax cut debate. There are a number of Republicans who think that the size of the President's proposed tax cut is far too small. We've heard calls for a tax cut on the Republican side of $2.2 trillion, for example. So I think the President is encouraged by the fact that the Democrats have announced their support for cutting taxes. ”

“ Well, certainly, if you don't cut taxes as much as President Bush has proposed, if you say the tax cut must be a different level, a smaller level, that means people will pay more taxes than they are currently paying under the Bush proposal -- than they would pay under the Bush proposal. ”

“ What our plan will do is give to the average family and every American with courage to invest in a new idea opportunities to make this economy the greatest miracle for growth and human progress the world has ever seen.
With your support, this will be the last year the American people face today's high tax barriers. We'll propose reducing sharply personal tax rates, bringing the top rate down to 35 percent or lower, and providing most Americans a tax cut. ”