February 28, 2001

(Washington, DC) -- The Small Business Survival Committee (SBSC) today praised President George W. Bush for laying out an aggressive tax relief package in front of a joint session of Congress last night that will bolster economic growth and restore some element of fairness to America`s tax code.  

In response to the speech`s focus on reducing income tax rates, SBSC President Christopher Wysocki said, "A reduction in marginal tax rates means putting real dollars into the pockets of real small business owners across America.  Roughly 90% of small business owners pay individual rather than corporate tax rates, and the across the board tax cut proposed by President Bush will result in real savings for both employers and employees."

President Bush has proposed to replace the current five rate structure of 15, 28, 31, 36, and 39.6 percent with a simpler and fairer tax rate structure of 10, 15, 25, and 33 percent structure.  His plan also includes eventual elimination of the death tax and making the Research and Experimentation tax credit permanent.

"One of the biggest obstacles small business owners and entrepreneurs face today is the inherently unfair death tax.  President Bush`s proposal to phase out the death tax will mean that men and women who work to build a business and pay taxes year after year are not prevented from passing on their life`s work to their children or relatives," said Wysocki.

Speaking about the Research and Experimentation tax credit proposal, Wysocki said, "For the long term economic growth of our nation, it is important to have certainty in the tax code.  There is no reason for the R & E tax credit to be continually subject to reauthorization."

"All in all, last night`s speech was a home run in the first inning of the tax debate.  America`s small business community should be excited about this plan, and we look forward to working with the Bush Administration to continue finding ways to ease the tax burden on the entrepreneurs who drive the American economic engine," concluded Wysocki.

The Small Business Survival Committee is a nationwide, nonpartisan and nonprofit advocacy organization representing more than 70,000 men and women across the United States.  For more information, please visit the SBSC website at www.sbsc.org or call (202) 785-0238.