La Mirada, California 90638
February 21, 2001

Allison Giles
Staff Director, Committee on Ways and Means
U.S. House of Representatives
1102 Longworth House Office Building
Washington, D.C. 20515

Ref: President Bush's tax relief proposal.

Dear Madam,

I would like to submit this written statement for consideration by the Committee and for the inclusion in the printed record of the hearing. It is my understanding that President Bush's tax relief proposal includes, among other things, reductions in individual income tax rates.

First, I must applaud the President for keeping his campaign promise in regards to the tax issue. The President indeed understands how necessary his tax relief plan is to the nation. The President's proposal, however, does have a flaw. It requires government to work harder and to conjure new remedies for the "Social Security problem," which has existed for many years. In addition, I believe that potentially depriving government of additional monies creates fear for many government officials since they will be required to become more efficient and cost conscious. This fear is what may potentially stop the proposal from becoming law.

Second, opponents argue that President's tax relief proposal isn't fair because the poor will not benefit. Doesn't the poor benefit by paying fewer taxes in the first place? Must we reward individuals that pay no taxes or who are in the 15 percent tax bracket? Furthermore, aren't these the same individuals that qualify for the earned income credit? The President's plan is to enact an across-the-board tax relief so that all Americans who pay taxes get something back. Isn't that fair?

Third, our economy has slowed down dramatically over the past year and continues. The last estimate I read indicates that consumer spending is about 68 percent of the gross domestic product. In other words, we depend on consumer spending to help make the economy grow. If all of this spending slows or drops, our economy is going to be in serious trouble. We need to cut taxes to create growth. Economists may argue that lowering interest rates will alleviate the economy from the slowdown. I tend to disagree. Thus far, our economy hasn't witnessed any positive signs despite the recent reductions in the federal funds rate.

Finally, to those who believe that we cannot afford the tax relief. Please be aware that just recently, tax surplus estimates jumped $1 trillion to $5.6 trillion over the next ten years. Also, the House voted to lock away much of that tax surplus to strengthen Social Security and Medicare. In other words, estimates indicate that there is plenty of tax surplus left over to give Americans tax relief, pay off our national debt, and increase resources for other priorities.

We need to support the new President. We need to make a real difference in the lives of taxpaying Americans. Let's stop making excuses. Let's stop punishing the taxpayers.

Thank you for your time.

Respectfully,

Stacey Salazar
Taxpayer