May 16 2003
Wes Hickman/Kevin BishopWASHINGTON -- U.S. Senator Lindsey Graham (R-South Carolina) voted last night in support of more than $400 billion in tax relief. The vote in the Senate was 51-49. “It was a big day for the taxpayer,” said Graham. “The number one reason I’m voting for a tax cut is to create jobs.” “According to estimates, if this bill passes, a million jobs will be created in the next eighteen months,” said Graham. “Last night was a huge victory for President Bush because we got the actual elements of his tax cut back on track.”
The major provisions of the Bush tax cut plan passed by the Senate:
- Lowering and Eliminating the Tax on Dividends: The plan excludes 50 percent of dividends from taxes in 2003 and makes dividends tax-free in 2004.
- Lower Income Tax Rates: The plan lowers tax rates across the board for all taxpayers.
- Increases the Child Tax Credit: The child tax credit would immediately increase from $600 per child to $1,000 putting more money into the pockets of parents.
- Marriage Penalty Relief: Makes the deductions for married couples twice that of single filers. The provision eases the quirk in the tax code that makes some married couples pay more in taxes than singles.
- Tax Relief to Boost Small Business: The plan increases from $25,000 to $100,000 the cost of equipment expenses small businesses can deduct.
“The tax cut will help in the effort to create new jobs and get the economy humming on all cylinders,” said Graham.
President Bush supported Senate passage of the legislation.
“I commend the Senate for its bipartisan passage of a Jobs and Growth package that includes all of the components of my original plan,” said President Bush. “By including a measure to completely abolish the double taxation of dividends, the Senate has demonstrated that they are committed to creating as many jobs as possible for American workers. The Senate bill also speeds income tax rate cuts for individuals and families, increases the child credit, provides marriage penalty relief, and increases expensing for small businesses.”