Washington, DC - Congressman Nathan Deal joined a majority of his colleagues and voted today to pass H.R. 3, the Economic Growth and Tax Relief Act of 2001. Congressman Deal issued the following statement.

"I supported this tax cut for all Americans because I believe our government receives more money than it needs and that money would be better off in the hands of those who earned it. The government does not need this money. The people do. Americans have worked hard creating our strong economy, and now we should provide immediate relief from the highest peacetime tax burden in American history. The people of Georgia work hard to support their families, and this plan will help all Georgians keep their hard earned money instead of paying it to the federal government. Our government has a surplus, and if extra money remains here in Washington it will end up being spent on more unnecessary programs. On behalf of hard working Americans, I join President Bush in asking for a refund. The average American family works until May 10 every year just to pay their tax bill, before saving a cent for retirement or college. American families pay more in taxes (38%) than they spend on food, clothing, and housing combined," Deal stated.

The Economic Growth and Tax Relief Act enacts the federal income tax rate reductions that President George W. Bush submitted to Congress and make the rate change on the first $12,000 of taxable income for a married couple and $6,000 for a single person retroactive to January 1, 2001. It reduces the current five income tax rate brackets (15 percent, 28 percent, 31 percent, 36 percent, and 39.6 percent) to four lower tax brackets of 10 percent, 15 percent, 25 percent, and 33 percent. It also provides that the current law's refundable child credit and earned income tax credits will not be reduced by an individual's alternative minimum tax (AMT).

"We took the first of many steps toward providing tax relief to the American people. This initial step will save Georgia's taxpayers $25.9 billion. An average family of four earning $55,000 per year will save approximately $1,930. The plan will lead to more take-home pay, meaning Americans will have more money for housing, college, and retirement savings, while also stimulating the economy and creating job opportunities as well as increasing investment, family savings, and family income," Deal said.

The legislation will be sent to the Senate for consideration. "I call on the U.S. Senate to listen to the American people and send this initial tax relief package to the President and commend Senator Zell Miller for supporting the legislation." Deal concluded.