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Bushs Tax Proposal The President has proposed a bold and fair tax relief plan that will reduce the inequities of the current tax code and help ensure that America remains prosperous This tax relief plan promotes the values that make the American economy second to none -- access to the middle class family equal opportunity and the entrepreneurial spirit This plan will reduce taxes for everyone who pays income taxes and it will encourage enterprise by lowering marginal tax rates Under the Presidents tax relief plan the typical American family of four will be able to keep at least 1600 more of their own money Over the past several months the economy has slowed dramatically President Bushs tax cut will give the economy a timely second wind by placing more money in the hands of consumers and entrepreneurs President Bush also understands that over the long run wealth is created by hard-working risk-taking individuals not government programs Countries with low taxes limited regulation and open trade grow faster create more jobs and enjoy higher standards of living than countries with bigger more centralized governments and higher taxes The United States has led the way in economic performance over the last century because America is a freer country If people are given the freedom to create they do If people are given a stake in the outcome they succeed President Bushs tax relief plan reflects this basic trust in the American people and confidence in the American ideal by increasing tax fairness and enhancing the performance of the economy It includes Replacing the current tax rates of 15 28 31 36 and 396 percent with a simplified rate structure of 10 15 25 and 33 percent Doubling the child tax credit to 1000 per child and applying the credit to the Alternative Minimum Tax AMT Reducing the marriage penalty by reinstating the 10 percent deduction for two-earner couples Eliminating
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