Ed Royce: “I think we did see that the Kennedy tax reduction spurred an economic growth rate of between 4 and 5 percent. When…”

“I think we did see that the Kennedy tax reduction spurred an economic growth rate of between 4 and 5 percent. When President Reagan reduced the effective tax rate and when Congress reduced that rate in response to his plan, the economic growth rate was over 4 percent a year. What we are talking about in this bill that the President has put forward is a compromise measure that will provide tax rebate payments of up to $600 to low-income families who are struggling to make ends meet; it would lower the 27 percent tax rate to 25 percent that would affect 36 million hard-working taxpayers and give them relief. This compromise measure would help small business by allowing them to deduct 30 percent of the cost of new investments over the next 3 years. That would put a lot of money into purchasing new equipment in order to keep those jobs in manufacturing going. And then, it provides an additional 13 weeks of unemployment assistance for workers who have been laid off since the recession began, and $4 billion in Federal aid for benefits for those who are part-time workers. Lastly, it helps unemployed workers keep their health insurance by providing an innovative new tax credit worth $3,500 a year, and workers would be able to keep their health insurance.”