By Deb Reichman
President Bush signed a $70 billion tax-cut package Wednesday that Republicans hope will ingratiate them with voters as they head into midterm elections with worries about holding control of Congress.
“Our pro-growth policies stand in stark contrast to those in Washington who believe you grow your economy by raising taxes and centralizing power,” said Bush, who was joined at the signing ceremony by Vice President Dick Cheney. “They are wrong. Our pro-growth economic polices are working for all Americans.”
The GOP says the tax cuts, which were first enacted in 2003, have created millions of new jobs and bolstered tax revenue. Democrats overwhelmingly opposed the bill, saying the tax cuts on capital gains and dividends will flow mostly to rich Americans.
“The bill I sign today is a victory for the American taxpayers and is a strong lift for our economy,” Bush said.
The bill passed the Senate last Thursday by a 54-44 vote.
The legislation Bush signed provides a two-year extension of the reduced 15 percent tax rate for capital gains and dividends, which were set to expire at the close of 2008.
An election goal fulfilled, President Bush signed a $70 billion tax cut to extend some of his 2003 taxcuts to 2010 and to provide relief for near 15 million families by taking away their eligibility for the AMT, or alternative minimum tax, a tax that was originally written and put into law for wealthy Americans.
I am very greatful Republicans in Congress and President Bush have created and signed this legislation into law. Not only will the tax cuts be able to help this country in the short term economically, but will help investors down the road and keep America fiscally healthy. I’m very excited what this will mean for the country over the next couple years.