Economic Growth and Jobs Package Presented by the Bush Administration
Words: Dan KesterNow that the 108th Congress is back in session and new members are finally getting
their committee assignments ironed out, they have lots of work to do. Not only have
members been busy attempting to finalize the appropriations bills left over from the
last session, but President Bush has made it clear that one of his first ? if not top
? priorities will be to enact his economic growth and jobs proposal. Bush believes
this proposal is necessary to turn our economic recovery into lasting prosperity that
reaches every corner of America.
The President's economic agenda has three, main goals: encourage consumer spending
that will continue to boost the economic recovery; promote investment by individuals
and businesses that will lead to economic growth and job creation; and deliver
critical help to unemployed citizens. The President's new proposal would also speed up
the 2001 tax cuts to increase the pace of the recovery and job creation, end the
double taxation of dividends and give small businesses incentives to grow, extend
existing unemployment benefits, and create new re-employment accounts to help
displaced workers get back on the job. Although the bill doesn't specifically
eliminate the death tax completely, in a speech to the U.S. Chamber of Commerce
recently, Vice President Cheney said that remains a top priority of the Bush
Administration.
This economic plan will help small business owners in other ways. For example, 23
million small business owners would receive tax cuts averaging $2,042 beginning in
2003. And, every small business owner who purchases equipment to grow and expand will
get assistance through an increase in the expensing limits from $25,000 to $75,000,
indexed for inflation.
President Bush recognizes the fact that small businesses create the majority of new
jobs and account for half of the output of the economy. The current Administration
believes our tax laws should encourage small businesses to buy technology, machinery
and other equipment they need to expand their business.
The President's jobs and growth package will provide $98 billion of total tax relief
over the next 16 months and $670 billion over the next decade. The American economy is
strong, but it still has lots of room for improvement. Getting this ambitious package
enacted into law will not be easy. In fact, a few members of his own party are
skeptical that the President's proposal will create more jobs, increase the tax base,
and reduce the tax burden of those who need it the most without increasing interest
rates or driving up the deficit. Only time will tell.
One thing's for certain: the President's plan is sizeable enough that he'll have
plenty of room to negotiate.
MCAA is hopeful that the White House can get a sensible economic agenda through
Congress that will truly benefit the backbone of our economy ? our nation's small
businesses. We'll be watching its progress very closely in the weeks and months to
come.