Make Tax Relief Permanent

Make Tax Relief Permanent

Rep. Boozman's Column for the Week of February 23, 2004

Since 2001, President George W. Bush and Congress have been working to reduce the tax burden of the American people. So far, we have passed tax relief that has resulted in more jobs across the nation and has empowered families and individuals by allowing them to keep more of their hard-earned money. With tax season upon us, I wanted to take a moment to highlight how these changes have helped families, individuals and small businesses save money on their taxes.

As you sit down with your pay stubs and your IRS forms, keep in mind these major tax code changes that have gone into effect over the past couple of years:

§ Individual tax rates have been cut across-the board, allowing every working American to keep more of his or her money.

§ The marriage penalty has been eliminated, putting an end to an unfair rule that forced married couples to pay more taxes than they would if they filed individually. The marriage penalty adversely affected over 42 million couples before it was eliminated.

§ The child tax credit has been increased to $1000 dollars per child up by $400 dollars. For a family of three that is a total savings of $3000 dollars.

§ The capital gains tax has been reduced from 20 to 15 percent and from 10 to 5 percent for low-income workers. The capital gains tax is a roadblock to investment. By reducing this tax, we encourage individuals and families to invest in their future.

§ Self-employed individuals can now deduct the full amount of their health insurance, instead of just 70 percent. The self-employed often fall through the cracks as they are forced to purchase their own insurance. With health care costs continuing to rise, it is important that everyone has an opportunity to afford coverage.

§ The Lifetime Learning Credit has been doubled, which promotes continued education and develops America's workforce for the future.

§ Deductions for child and dependent care have been increased to up to $1050. These credits are available for those who work or look for work and must pay childcare expenses or spousal dependents of any age with physical or mental incapacities that do not allow them to take care of themselves.

§ The adoption credit has been increased to encourage families who want children to consider adopting.

Already, these tax cuts have spurred our economy's recovery and created thousands of jobs. By putting the money back in the hands of the American people, we reduce their economic burden and empower them to spend their own money in a manner they see fit. Unfortunately, despite all their benefits, these cuts are due to expire in 2010.

Without permanent tax relief, every taxpaying American will see his or her income tax rates rise in 2011. The result would be the largest tax increase in our history and that would certainly not be good for our nation's economy. For this reason, I will be working with President Bush and my colleagues to make this tax relief permanent. I don't want hardworking Americans to be shouldered with a massive tax increase in 2011, and I will do my best to ensure that doesn't happen.