January 7, 2003

WASHINGTON - The Small Business Survival Committee today praised President Bush's economic plan and said it would be a big help for the nation's small businesses.

The wide-ranging plan announced by the President in Chicago today includes immediately and permanently implementing the 2001 Bush tax cut package, ending the double taxation of dividends, increased expensing for small businesses, and other provisions.

"Business investment is key to fostering healthy levels of economic growth. President Bush`s plan offers much needed capital and incentives to the sector of the economy shouldering the bulk of job creation, economic growth and innovation -- small businesses and entrepreneurs," said SBSC Chairman Karen Kerrigan.  "We are also encouraged by the President`s proposal to eliminate the double taxation of dividends. With the strength of the economy becoming increasingly dependent on the health of the equity markets, this measure will help restore both certainty and investor confidence. The overall package is good for small business, which means it`s good for America."

SBSC Chief Economist Raymond Keating stressed the importance of speeding up the Bush income tax cuts to small businesses:  "First, income taxes hurt the economy by diminishing incentives for working, saving, investing and risk taking, all which drive economic growth.  Obviously, cutting income tax rates will boost pro-growth incentives.  Second, most people fail to realize that roughly 90 percent of U.S. businesses do not pay corporate income taxes, but instead pay personal income taxes because they are sole proprietorship, partnership or S-Corporations.  So, personal income tax relief directly impacts the business bottom line."

SBSC President Darrell McKigney particularly praised President Bush for making the case against double taxation in advocating an end to the taxation of dividends:  "President Bush is right on the money in pointing out the unfairness of taxing business profits twice.  That same principle could be applied to capital gains taxes, which should be another tax targeted for elimination."

The Small Business Survival Committee is a nonprofit small business advocacy organization with 70,000 members nationwide.  Find out more at www.sbsc.org