Committee on Ways and Means

For Immediate Release
August 28, 2001
Contact: Press Office 202-225-8933

Responsible Surplus Remains After Needed Tax Relief Delivered

Washington, DC – Today, Ways and Means Committee Chairman Bill Thomas (R-CA) released the following statement:

Now the Congressional Budget Office (CBO) and the Office of Management and Budget (OMB) have both issued updated estimates of the federal budget. The federal government continues to maintain a surplus of at least $153 billion.

Regardless of who is doing the estimating it is a fact that the government has less to spend because of a slowing economy and tax relief. That was the goal of tax relief - to put the money back where it belongs, in the taxpayers’ pockets. Lower taxes will reinvigorate a stagnant economy, and the resulting economic growth will increase revenues.

It is also important to put these estimates in perspective. $9 billion is less than 1/10th of 1 percent of our $10.3 trillion economy. It’s less than 1/2 of 1 percent of total revenues, less than 1.5% of total social security tax revenue and less than 6 percent of surplus social security tax revenue.

The Bush tax cut returns approximately $40 billion to hard-working American families in 2001. But we still have serious work ahead to revive the economy and protect Medicare and Social Security for our children and grandchildren.

 

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