United States president George Bush signed this Wednesday in a pompous ceremony in the White House the bill that contemplates tax cuts equivalent to 330 billion US dollars in ten years, plus an additional 20 billion to support deficit strapped states.
The bill to stimulate the US economy means families with children will benefit beginning next July, (400 US dollars reimbursement for each child); wage earners will receive fatter pay checks and investors will pay less taxes on dividends.
"By ensuring Americans have more money to spend, save and invest, this legislation supplies fuel for a strong economic recovery", said President Bush.
"An economy with strong foundations means that every American that wishes to work can find a job".
However the tax reduction bill is far from President Bush's original request 720 billion and remains a controversial political and financial issue given the ballooning federal budget deficit. Actually a day before the signing ceremony in the White House, Mr. Bush expanded the national debt ceiling by another 7.400 billion US dollars that will entitle the government to borrow the necessary funds to cover the ever growing deficit.
President Bush argued that the tax cuts will benefit 136 million American families.
In spite of the Republican majority in Congress controversy persists. and Democrats together with some "wet" Republicans are increasingly concerned with the federal budget deficit that this fiscal year is estimated to reach a record 300 billion US dollars.
During the previous Democrat administration of President Bill Clinton the federal government managed four years running budget surpluses.