(Archived Content)
Treasury Secretary Paul O'Neill made the following remarks at an event celebrating the drop in the income tax withholding rates:
Just about everyone across America knows by now that on July 23 rd taxpayers will start receiving checks from the federal government, as payments for the retroactive reduction of a portion of the 15% tax rate bracket to 10%.
But there's another important July date that taxpayers also have cause to celebrate. On July 1 st, for the first time since Reagan was President, income tax rates will drop for America's taxpayers. New withholding tables go into effect, reflecting rate cuts that will let nearly 55 million taxpayers keep more of their own money.
Cutting income tax rates is the strongest fiscal policy stimulus for our economy. And it is happening exactly when the economy needs it, because President Bush worked with the Congress to achieve quick action on his tax relief plan. I am delighted that this weekend the first phase of long-term, across the board tax relief for hardworking American families becomes a reality.