March 1, 2001

President George W. Bush
1600 Pennsylvania Avenue
Washington, D.C.  20500

Dear President Bush:

On behalf of the Small Business Survival Committee (SBSC) and its 70,000 members nationwide, I am writing to endorse your tax relief package. Small business owners and entrepreneurs across America stand ready to ensure congressional passage of this important -- and may I add -- long overdue tax relief plan.

Your proposal to broadly cut marginal income tax rates is especially welcome by our nation`s small business owners.  With over 90 percent of U.S. businesses paying the personal income tax, most of our nation`s job creators will experience direct relief when your plan is signed into law.  At a time when future economic conditions remain uncertain, it is especially important that a portion of the hard-earned dollars earned by small firms are returned to these entrepreneurs so that they may continue to reinvest in their businesses, and reward their workforce.  Lowering and compressing the current five tax rates to four - 33%, 25%, 15% and 10% -- moves the tax code towards our goal of simplicity, another major priority for small businesses.

Four months ago, SBSC Chief Economist Raymond Keating wrote that "dangerously high" federal revenues and federal individual income tax revenues as a share of the economy was a warning sign that tax relief was necessary to avoid economic slowdown.  In 1999, personal income taxes reached a new record high of 9.5%, and in 2000, they climbed to 10.1% as a share of the economy.  Federal revenues hit 19.6% as a share of the economy in 1998, and 19.7% in 1999. Historically, whenever individual income taxes approached or exceeded the 9% mark, as noted by Mr. Keating, and federal revenues neared the 19% level, it has signaled economic hardship. As record levels of tax revenues continue to pour into the federal government, and capital demand increases in the private sector (a demand that must be met to sustain economic growth) the case for your plan strengthens daily.

With your plan to eliminate death taxes President Bush, you will find no greater support for this initiative than in America`s small business community.  The majority of Americans, regardless of their income, political party, or age believe death taxes are unfair and un-American.  Abolishing the death tax will save many family-owned businesses and farms, while saving jobs and encouraging capital formation.

Of course, SBSC strongly supports all other elements of your tax package.  Everyone who pays taxes gets tax relief, and your plan wisely begins to address the most unfair and economically unproductive portions of our complex and burdensome tax system. We stand ready to assist you President Bush, in moving your tax plan through Congress. Thank you for your leadership, and for making good on your campaign promise to enact tax relief for all Americans.

Sincerely,


Karen Kerrigan
Chairman