January 10, 2001

Bush Tax Package Will Benefit Business and the Economy Says SBSC
Group Urges Quick Passage of Income Tax Rate Cuts and Elimination of Death Tax

Washington, D.C.-The Small Business Survival Committee (SBSC) today declared that the tax plan proposed by President-elect George W. Bush would be beneficial for a sagging economy, and a big plus for the small business and entrepreneurial sector.

"Congress needs to get behind the Bush tax relief plan, and make it the top legislative priority.  When one considers the amount of revenues the federal government sucks out of the private sector, this by no means is a huge tax cut.  However, it is an important one. Particularly now, and especially for small businesses," stated SBSC Chairman Karen Kerrigan.

SBSC chief economist Raymond J. Keating added: "We are encouraged that the business community is coalescing around Bush's across-the-board approach rather than targeted, parochial measures.  An across-the-board cut in personal income tax rates is a huge benefit to the entire business community because it boosts critical incentives for working, saving, investing and risk taking, and because more than 90% of all businesses -- such as sole proprietorship, partnerships and S-Corps -- pay the personal income tax."

Keating continued: "Some have been asserting that interest rate cuts by the Federal Reserve would be a better economic tonic than tax cuts. Most assuredly, we at SBSC have been arguing all along that the interest rate increases implemented by the Federal Reserve in 1999 and 2000 were grossly misguided, and need to be reversed quickly.  Overall sound economic policy, though, dictates that monetary policy should be exclusively focused on price stability. Meanwhile, fiscal policy has to be moved in a pro-growth direction. What the U.S. economy needs is a change in fiscal policy that will boost supply-side incentives.  President-elect George W. Bush's tax plan is a good start.  Across-the-board relief in income tax rates, and eliminating the death tax are solid pro-growth measures."  

Keating cautioned: "The more beneficial approach to the economy would be that the tax cuts be phased in over a more immediate period.  In addition, we encourage Bush and Congress to strongly consider cutting capital gains tax rates, and index all gains for inflation, in order to boost economic growth."

SBSC is a nonpartisan, nonprofit small business advocacy group with more than 60,000 members across the nation.  For more information, please call SBSC at 202-785-0238, or visit SBSC's website at http://www.sbsc.org/.