Radio Address to the Nation on Tax Reform
My fellow Americans:
may remember what the
And so, because of you and your support, in the last few months we've seen develop in Congress a broad, bipartisan backing for tax reform. And now, thanks to the leadership of Senator Bob Packwood and Congressman Dan Rostenkowski, the Senate and House are preparing to vote on the final bill. Passage of that bill will mean that for most of you taxes will come down. But even as I'm speaking to you, the special interests are launching their last-ditch offensive. You're going to be hearing a lot from them in the next few days. So, before they get started, let's just set the record straight.
First, let's be clear about what tax reform means to you and your family. One of our important goals in tax reform has been making the tax system better for American families. Well, if you're like 80 percent of Americans, enactment of this bill will mean that your top tax rate will be no more than 15 percent. Your standard deduction will go way up and your personal exemption will almost double to a full $2,000 by 1989. And no one's income will be taxed more than 28 percent. All this means that if yours is like the typical family, when everything is added up, you'll end up with $500 to $800 more a year. Not bad for starters. And tax reform means even more to lower income Americans. This bill is perhaps the greatest antipoverty program in history. It will take 6 million poor people off the income tax rolls entirely.
Packwood is chairman of the Senate Finance Committee, and Dan Rostenkowski is
chairman of the
But what will it do for the economy as a whole? The short answer is: more jobs -- million more in the next decade, according to the Treasury Department. The first reason for that is you. You'll have more money, and whether you spend it or invest it, you'll be helping to create more jobs. But that's not all. We're taking the shelter out of tax shelters. No longer will there be fancy schemes and fast angles that produce nothing but tax breaks. Lawyers, accountants, and businessmen will spend more time looking at the reality of supply and demand and less time exploring the never-never land of the tax code. They'll be looking for investments that create real products, real income, and real jobs.
said all along that the final tax reform bill had to keep the incentives for
American industry to invest in jobs and the future. And that's what this
Senate-House tax reform bill does. It keeps the most important incentives for
business investment that we won in 1981 -- our tax bill. And while making sure
every business pays a fair-share minimum tax, it brings down the overall
corporate tax rate to 34 percent. The other industrial countries of the world
know what this means. In almost every one, voices are now saying that the new
American tax system will make
years ago, all of us began a long journey to restoring
reform will help us continue that growth. I hope you will support our effort to
defeat the special interests and win one for the hard-working taxpayers of this
country. If your Congressmen and Senators cast their votes for
Until next week, thanks for listening, and God bless you.
The President spoke at from