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Capital Hill Watch Alert

Jobs and Growth Tax Act of 2003 (S. 2)

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 off-sets.   

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)

Contact Information:

Capitol 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 office.)

To go to your senators' websites, find their E-mail or to find out who your senators are... http://www.senate.gov/contacting/index_by_state.cfm

Addressing Correspondence:

The Honorable (full name)
United States Senate
Washington, DC 20510

Dear Senator (last name):

 

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