FOR RELEASE: February 13, 2008

            If Congress fails to act, we Americans will pay the price.  Unless Congress 

acts, the following tax increases will automatically occur for the following tax-years:

2008 :

            ...The exemption for the Alternative Minimum Tax (AMT) will decrease from $44,350 to $33,750 for single filers and from $66,250 to $45,000 for married couples filing jointly.

            ...Taxpayers will not be allowed to deduct their state and federal general sales taxes from their federal income tax.

            ...Taxpayers will not be able to adjust their income for qualified tuition and related expenses.

            ...Businesses will not be able to claim a tax credit for research, experimentation and development activities.

2009 :

            ...Taxpayers will no longer be able to claim a tax credit for certain residential energy efficient property, a tax credit for the construction of new energy efficient homes or a tax deduction for energy efficient commercial building property.

2010 :

            ...The Section 179 business expensing cap will decrease from $128,000 (plus inflation after 2008) to $25,000, and the starting point for the phase-out of this deduction will decrease from $510,000 (plus inflation after 2008) to $100,000.

2011 : 

            ...The marginal income tax rates will increase as follows:

                        ...35 percent bracket will increase to 39.6 percent

                        ...33 percent bracket will increase to 36 percent

                        ...28 percent bracket will increase to 31 percent

                        ...25 percent bracket will increase to 28 percent

                        ...ten and 15 percent brackets will condense to 15 percent.

            ...The capital gains rates for individuals will increase from 15 percent and zero percent to 20 percent and ten percent.

            ...Dividends will no longer be taxed at the capital gains rates for individuals, thereby increasing the double taxation of dividends by as much as 62 percent.

            ...The standard deduction for couples as a percentage of the standard deduction for singles will decrease from 200 percent to 167 percent - restoring the marriage penalty.

            ...The top end of the 15 percent marginal income tax bracket for couples as a percentage of the top end for singles will decrease from 200 percent to 167 percent - restoring the marriage penalty.

            ...The child tax credit will decrease from $1,000 to $500.

            ...The “death tax” using the “stepped up” basis will return with a 55 percent maximum rate (including surtax) and a $1 million exemption, after years of decreasing “death tax” rates, increasing exemptions and one year using the “carryover” basis to calculate the tax due.

            On February 14 th , the Presidential Coin honoring James Monroe will be available to the public.  Monroe was born in Westmoreland County , Virginia and was the fifth President of the Untied States, serving from 1817-to-1825.  A graduate of the College of William and Mary, Monroe fought in the Revolutionary War and served two terms as Governor of Virginia.

            The best-known of Monroe 's accomplishments is the fundamental policy that later became known as the Monroe Doctrine.  In a message to Congress in 1823, Monroe declared U. S. opposition to European countries attempting to colonize the Americas or interfering in sovereign countries' affairs.  In addition, during Monroe 's presidency the United States acquired Florida (1819), and Congress passed the Missouri Compromise bill, which granted statehood to Missouri and barred slavery north and west of the Missouri forever.

            The Monroe Presidential $1 coin will have “In God We Trust” on the edge.  Those issued beginning in 2009, the Presidential $1 coins will have “In God We Trust” on the face of the coins, as required in Congressional legislation that I sponsored.

            Please keep in touch with me on issues that are important to you.  You may write Congressman Virgil Goode, 70 East Court Street, Room 215, Rocky Mount , VA 24151 ; or fax to 1-540-484-1459; or call toll-free to the Danville office, 1-800-535-4008.