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Cole Votes for Immediate Tax Breaks, Money in the Mail

May 23, 2003
Press Release

Washington D.C. – In a few short weeks Oklahomans, along with Americans across the nation, will be pocketing more of their paycheck and receiving reimbursement checks in the mail. After a joint conference committee agreement and a meeting with House and Senate Republicans and the President, a tax cut plan of $350 billion was sent to the floors of both chambers. The House passed the package 231-200 and the Senate 51-50. This package will also include $10 billion for state and local governments and $10 billion for Medicaid assistance over the next two years.

"Creating jobs is the key to bolstering our economy and reducing the deficit. The first step is putting Americans back to work and creating a fair tax structure that puts more money in their pockets. A married couple with two children and income of $40,000 will see their taxes decline under the Jobs and Growth Tax Relief Reconciliation Act by $1,133 (from $1,178 to $45), a decline of 96 percent," Congressman Cole said.

"This won't be a top-heavy tax cut benefiting only a few, it is a real tax cut for middle- and low-income families, for the people who need them," Congressman Cole said. "What this tax cut says is that we have a President and a Congress who are very concerned about the economy and the hardship it is placing on many working Americans. It shows that we have a practical plan, ready to be signed by the President, to grow the economy and create jobs."

"This tax plan will help restore confidence in the market by reducing taxes on capital gains and dividends. Reducing the cost of capital will promote business investment and foster growth. Raising the value of stocks and equities will increase the values of workers' 401(k)s and other retirement plans," Congressman Tom Cole said.

"I am very pleased with the $20 billion allotted specifically to aid states with recent budget shortfalls. Oklahoma will greatly benefit from this additional federal aid. First reports showed that Oklahoma would receive over 99 million in funds specifically for Medicaid and 117 million in additional funding," Congressman Cole said.

The $328 billion tax cut will include the elimination of the marriage penalty tax and a child tax credit increase from $600 to $1000 per child. It lowers income tax rates and expands the 10% tax bracket. It also increases the small business deduction for equipment to $100,000 from $25,000.

"This year 91 million taxpayers will receive, on average, a tax cut of $1,126. The agreement between the House and the Senate on the President's Jobs and Growth Plan is a great victory for hardworking Americans," Congressman Tom Cole said.