Working to Prevent Tax Hikes on Americans

Working to Prevent Tax Hikes on Americans
By Tom Cole
July 19, 2004

"There will always be death and taxes; however, death doesn't get worse every year." That quote, coined by an anonymous author, has lasted through the years because all too often it has been an accurate assessment of financial reality.

Under the leadership of President Bush, Congress passed two of the largest tax relief bills in this nation's history and has started to reverse the situation described by that anonymous quote. Now we have a growing economy and, so far, more than 1.5 million new jobs have been created in 2004. Republicans in the U.S. House of Representatives have continued our efforts to ensure Americans don't pay higher taxes to Uncle Sam in 2005 by passing legislation to make the 2001 and 2003 tax packages permanent. If the Senate also passes this legislation, marriage penalty relief, Alternative Minimum Tax (AMT) relief, the expansion of the 10 percent tax bracket, and the $1,000 child tax credit will remain intact next year. These bills will prevent tax increases on American families.

In 2001, Congress passed a bill that changed the tax code so it would not penalize married couples by taxing them more than individuals. A bill the House passed this year will ensure marriage penalty relief is not reduced next year. Unless the relief is extended, 27 million married couples will face an average tax increase of $300 next year. By increasing the standard deduction for joint filers, 413,000 married couples in Oklahoma saw lower tax deductions in their paychecks. Married couples should not suffer an unfair tax disadvantage simply because they are married. The government is sending the wrong message to families by making them pay more in taxes then they would if they were single.

The U.S. House recently passed legislation that will continue our efforts to reduce the burden of the Alternative Minimum Tax (AMT) on middle-class Americans. The House bill prevents eight million taxpayers from feeling the bite of AMT next year, by extending the AMT relief enacted in 2001 and 2003, with inflation adjustments. This bill will prevent an average tax increase of $1,520 on 11 million Americans next year.

Republicans also passed a bill to cement the benefits of the new 10 percent tax bracket. The 10 percent bracket applies to the first $7,000 in taxable income for single taxpayers and double that amount for married couples. If this bill doesn't become law, more than 73 million taxpayers will be forced next year to pay higher taxes. The expansion of the 10-percent bracket benefited 709,000 married and single Oklahomans last year.

President Bush's tax relief packages also increased the value of the child credit to $1,000. This allows parents to keep more of their hard-earned money so they can use it to improve the lives of their children, whether it is used for tutoring, new school clothes or simply making it easier to make ends meet. Last year this tax break helped 297,000 families in Oklahoman. The House recently passed a bill to ensure the $1,000 child credit doesn't drop next year and remains a permanent part of the tax code.

As families make their monthly and annual household budgets, it is only fair to provide them with a reliable tax code. A tax cut one year, followed by a tax increase the next year is unfair and makes long-term financial planning more difficult. Congress will continue to work to provide Americans with lasting tax relief. Without that effort, the anonymous speaker's insinuation that "taxes get worse each year" will persist. We owe it to hard-working Americans to prove him or her wrong.