FRONT LINES: State of the Union
BY ROBERT FREEDMAN
Bush seeks to keep tax cuts
Foreign policy dominated President Bush’s State of the Union speech in January, but he did lay out a plan to spur job gains and economic growth by reauthorizing earlier tax cuts.
Cuts in capital gains, estate, and dividend taxes, along with other cuts enacted in 2001 and 2003, face expiration and need to be reauthorized by Congress this year, he said. Otherwise the tremendous growth the economy saw in the closing months of 2003 will be put at risk.
“Unless you act,” he said, directing his remarks to members of Congress, “small businesses will pay higher taxes, the death tax will eventually come back to life, and Americans will face a tax increase.”
Bush cited continuing low interest rates, strong new-home construction, and record-setting homeownership as among the drivers of the improving economy. “New-home construction is at its highest in almost 20 years,” he said. “Homeownership rates are at their highest level ever. Interest rates are low. This economy is strong and growing stronger.”
