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Republicans
on the Economy and Tax Cuts:
- President
Bush has proposed a $674 billion, 10-year plan for long-term
U.S. economic stimulus.
 The
administration proposes spending $364 billion over 10 years
to end dividend taxation, $64 billion to accelerate the cuts
in income tax rates, $58 billion to speed up the removal of
the "marriage penalty tax," $91 billion to hasten an increase
in the child tax credit, $48 billion to accelerate the shifting
of lower income taxpayers to the 10 percent bracket, $29 billion
to prevent more people from facing the alternative minimum tax,
and $16 billion in incentives for small-business purchases.
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The president wants to eliminate the tax on personal stock dividends,
calling it a double tax on company profits. Despite the $364
billion price tag, Bush administration officials project the
move would likely lead to a 10 percent increase in stock values.
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The proposal would also accelerate all income tax rate cuts
in Bush's 2001 tax plan that would have been phased in gradually
through 2010.
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The president's plan would add 190,000 jobs and 0.4 percent
to the gross domestic product in 2003, and 900,000 jobs and
1.1 percent to the GDP in 2004, the White House said.
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Senate Majority Leader Frist has said the stimulus plan would
be debated, but "at the end of the day, I am confident that
in a bipartisan way ... we will have support to pass it, to
implement it and ultimately, reap the benefits of it."
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Former Treasury Secretary Paul O'Neill has said the elimination
of the dividend tax would do little or nothing to improve the
nation's economy.
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U.S. Commerce Secretary Don Evans argues the Republicans' economic
stimulus plan would create 2.1 million jobs in three years.
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