April 2 – As April 15 approaches, more people are focused on the massive growth of government spending and how it may increase their taxes. With millions of Americans facing financial distress during this economic crisis, working families need to keep more of their hard-earned money to pay their bills and stimulate the economy. Congressman Zach Wamp introduced The American Working Families Tax Relief Act this week to offer reasonable solutions that will help families in Tennessee and across the country.
 
“By holding the line on taxes, we can help entrepreneurs, small business people and working families have a fighting chance in this economy. My legislation includes several common sense solutions for the challenges working families face in our country,” said Congressman Wamp. “We need to stimulate the economy and give working families some tax relief on things that really matter: education, home ownership and the sales tax deduction for states like Tennessee.”

 

The American Working Families Tax Relief Act would make certain tax relief permanent for middle-class families, including:

• Local and State Sales Tax Deduction: In recent years, the sales tax deduction has only been extended from one year to the next. It’s time to make that permanent.
• Higher Education Deduction: The current higher education deduction for qualified expenses like tuition and fees is set to expire at the end of this year. To help middle class families send their kids to college, this tax benefit for higher education should be permanent.
• Mortgage Insurance Premium Deduction: This deduction is important for people who have home mortgage insurance. This insurance premium needs to be deductible, but will end in 2010 unless it is made permanent.

“Extending the homebuyer tax credit would incentivize activity in the housing industry that has been so vital to the U.S. economy for a long period of time. If you want to upgrade or buy a different house, you would get this tax credit. That would stimulate the housing market and will create a lot of activity in the lending industry as people take advantage of the currently low rates,” Congressman Wamp said.
 
He continued, “There are people up here in Washington who are spending, borrowing and printing money irresponsibly. This is a plan that makes sense and offers tax solutions to working American families.”