CSE Supports Reported Deal on Economic Package

According to media reports today, House and Senate negotiators have agreed on a $350 billion tax cut package aimed at fostering economic growth. Citizens for a Sound Economy (CSE) said today that, while the reported tax cut is smaller and doesn’t include full permanent repeal of the double tax on dividends, the organization would support such a package as a meaningful step towards tax relief.

Citizens for a Sound Economy (CSE) President Paul Beckner said that the deal, given the confining parameters imposed by the Senate, is about as good as could be hoped for. The deal retains the accelerated marginal rate cuts as well as tax breaks for individuals and small businesses, while adding a reduction in capital gains and dividend taxes. While CSE would like to also see a full repeal of the unfair dividend tax (as well as the capital gains tax) we recognize that even this partial measure will reduce the cost of capital and have a beneficial effect on the economy.

Most importantly, there are no tax increases.

“If this deal stands, it will bolster economic growth, provide tax relief, and create jobs,” Beckner said. “While we wish it had more tax relief and a complete repeal of the dividend tax, it is a significant step in the right direction.”

“Americans need jobs. This plan will help create those jobs,” he continued. “Unfortunately, some in the Senate are reportedly standing in the way.”

CSE is activating its grassroots membership to contact Senators who, according to media reports, will not support the deal because of their insistence that $33 billion in new spending – a $20 billion bailout of the states and about $13 billion for the refundable portion of the child tax credit – be carved out of the $350 billion tax relief bill. Hiding behind claims of “fiscal responsibility,” these Senators are in fact larding tax relief legislation with new spending. CSE will be targeting Senators George Voinovich and Evan Bayh in particular. The American people are tired of waiting for tax relief and tired of waiting for Congress to take action to help grow the economy and create jobs.

“Senators Voinovich and Bayh will be hearing from the grassroots across America,” Beckner said. “Taxpaying Americans will be calling, emailing, and writing to tell them to stop standing in the way of and pass significant tax relief that will get the economy growing again.”