Bush signs $70 billion tax-cut bill

WASHINGTON — President Bush signed a $70 billion tax-cut bill on Wednesday that Republicans hope will help them with voters as they head into the fall elections with worries about retaining control of Congress.

"With this bill, we're sending the American people a clear message about our policy," Bush said. "We're going to continue to trust the American people with their own money."

Utah Republican Sens. Orrin Hatch and Bob Bennett joined Bush at the White House Wednesday as he signed the Tax Relief Extension Reconciliation Act of 2005.

"Now Utahns won't face a dramatic tax hike when they prepare their taxes next year," Hatch said. "Our economy is on the right track, and this will help us keep it there. We've made taxes on investments low so Americans can save and re-invest more of their money. That's helped create jobs, increase productivity and build retirement security."

"With all the political debate about the tax cuts, it should be pointed out that tax revenue is higher than ever before in history and 14 percent higher this year than last," said Bennett, vice chairman of the Joint Economic Committee. "Doomsayers' claims to the contrary, we must be doing something right."

In 2001, 224,000 Utah families reported dividend income, as did 171,000 small businesses, according to the Heritage Foundation. Since the tax cuts were enacted, a total of 5.2 million jobs have been created and unemployment is at a 20-year low of 4.7 percent. In Utah, unemployment is only 3.4 percent.

Democrats overwhelmingly opposed the legislation, saying the tax cuts on capital gains and dividends will flow mostly to the rich.

"Today's really a good day to be a millionaire, but it's a bad day if you want to be a millionaire," said Senate Minority Leader Harry Reid of Nevada "That's because President Bush just signed, with the stroke of a pen, a bill that sealed the fate of those trying to get ahead."

The GOP says the tax cuts, first enacted in 2003, have created 5.2 million jobs since August 2003 and bolstered tax revenue by nearly 15 percent last year. According to the White House, the cuts have helped spur growth by keeping $880 billion in taxpayers' pockets during the past five years. "Our pro-growth policies stand in stark contrast to those in Washington who believe you grow your economy by raising taxes and centralizing power," said Bush, joined at the signing ceremony by Vice President Dick Cheney.

The bill passed the Senate last Thursday by a 54-44 vote.