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American Morning

Bush Signs Tax Cut Bill

Aired June 07, 2001 - 11:19   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
DONNA KELLEY, CNN ANCHOR: It is official now. President Bush, in an event carried live here on CNN, signed a bill, just a short while ago, that calls for $1.3 trillion in tax cuts.

CNN's White House correspondent Kelly Wallace was there watching the ceremony, and joins us from the White House -- Kelly.

KELLY WALLACE, CNN CORRESPONDENT: Well, Donna, President Bush said today that a year ago, some said it would be a political impossibility to sign a significant tax cut into law, the president saying though, it has become a reality today, thanks to what he called the bipartisan leadership in the U.S. Congress. Just a short time ago -- about an hour ago -- the president was joined in the East Room by many members of the House of Representatives and the U.S. Senate who voted for this measure, including some of the 12 Democratic senators and some of the 28 Democratic House members who, again, supported it.

The president used his pen to sign into law the $1.3 trillion plan, which he says is fair, responsible, and the right thing to do for the American people. He also said this is an example of the cooperation between Republicans and Democrats and a signal, he believes, of how the two parties can work together, now that there has been a shift of power in the Senate.

(BEGIN VIDEO CLIP)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: This tax relief plan is principled. We cut taxes for every income taxpayer. We target nobody in; we target nobody out. And tax relief is now on the way. Today is a great day for America. It is the first major achievement of a new era...

(END VIDEO CLIP)

WALLACE: So what will it mean for you, this the first major tax cut in 20 years? All income tax rates will be slashed. The lowest rate will be reduced from 15 percent to 10 percent. The highest rate will go down from 39.6 percent to 35 percent.

And because that lowest rate of 10 percent has been made retroactive to January 1, the Treasury Department will be sending out some 95 million so-called rebate checks to tax payers. Singles can expect a check of up to $300. Single parents could receive up to $500. Married couples can expect up to $600. The White House hopes these refund checks, as well as the prospect of lower taxes over the next several years, will give a much- needed boost to the slowing economy.

As for looking ahead, Mr. Bush is certainly hoping to have similar signing ceremonies for other parts of his agenda, such as education and his energy plan, but that will be much tougher with the shift in power. The president, though, is having dinner tonight with the new leader of the Senate, Democrat Tom Daschle -- Donna.

KELLEY: From the White House, Kelly Wallace, thanks.

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