Capital Hill Watch
Jobs and Growth
Tax Act of 2003
The full Senate is expected
to vote on the Jobs and Growth Tax Act of 2003 (S.2) (To view: Full Text of Legislation). On Monday, May 12, 2003, the Senate will convene
for up to two hours of debate and start the consideration of S.2, the
Reconciliation bill. There will
also be no roll call vote.
To stimulate the economy
and create jobs the right type of tax relief is required, and S.2 does
not provide the economic stimulus required to help the ailing U.S. economy. For example, the measure limits the tax relief
to exempting the first $500 of dividends. This will do little to promote growth and productivity since it
does not lower the cost of capital or modify cooperate executives’ behavior.
Additionally, the bill would provide $20 billion in new spending
for the states.
Federal tax dollars
should not be used to subsidize states for fiscal irresponsibility. For example, although states have been complaining
about facing the deepest fiscal crisis since World War II, the latest
Commerce Department data demonstrates that, compared to the same period
last year, revenues have increased in the first three months 5.4 percent. However, by increasing outlays by six percent
they have spent, this spending is in addition to a 13.4 percent increase
between 2000 and 2002. Also,
to offset the tax relief provided, the Senate has included tax-increasing
In the case of the
$20 billion in new state aid, in part, customs user fees would be extended. Furthermore, for Americans on salaries earned
overseas, the biggest tax increase of $35 billion has occurred by ending
the $80,000 U.S. income tax exemption
for Americans on salaries earned overseas.
The economy will not be stimulated
by shifting the tax burden from one group to the other. The current fiscal crisis in Washington is
not the result of last year’s tax relief but the overspending on wasteful
federal programs. Compared to
Jobs and Growth Tax Act of 2003 (H.R. 2), passed by the House of Representative,
S.2 will not provide an adequate stimulus to promote growth and help spur an ailing economy.
What Can You Do?
Urge your senators
to NOT SUPPORT the Jobs and
Growth Tax Act of 2003 (S.2)
Hill Switchboard Numbers: 202-225-3121 or 202-224-3121 (Those numbers
will direct you to the Capitol Hill operator. Ask for your senator's
To go to your senators'
websites, find their E-mail or to find out who your senators are...
Honorable (full name)
United States Senate
Washington, DC 20510
Senator (last name):
to the American Voice Institute of Public Policy Home Page