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Each year when April rolls around the one thing that is on everyone's mind is taxes. Over the last four years, the President and Congress have won many victories for taxpayers across the country, including a temporary repeal of the death tax, the reduction of federal income-tax rates, marriage penalty relief, an increase in the child tax credit and alternative minimum tax relief. During this Congress, I will work to make these tax cuts permanent and simplify the tax code so American families and small businesses can have the consistency they need to make plans for the future with confidence.
To help ensure that American families will not see any increased taxes in the near future, the budget passed by the House a few weeks ago included $106 billion of tax relief over five years. The budget accommodates expiring tax provisions such as tax relief on capital gains and dividends, the alternative minimum relief and the estate tax repeal.
During the 108th Congress, the House passed the Death Tax Permanency Repeal Act, although the Senate did not follow suit, we hope to make more progress on this legislation during this session. The extremely unpopular, unnecessary death tax has made it very difficult for small business and farm owners to leave their legacy of hard work to their loved ones. After paying taxes throughout their life, it is unfair to tax property again upon a business owner's death. I am cosponsoring legislation during the 109th Congress to permanently repeal the death tax.
Another tax item we hope to make quick progress on is H.R. 1134, legislation that prevents the IRS from taxing disaster mitigation grants provided by FEMA.
This legislation is necessary and urgent due to the IRS's recent decision that federal grant money used to build tornado shelters is taxable. The House has passed legislation to reverse the IRS ruling and it now awaits action by the Senate. It makes no sense for the government to tax this grant money. Disaster relief saves lives and limits damages. These FEMA grants were given to thousands of Oklahomans and I will continue to work to make sure grant recipients are not forced to pay taxes on these grants. If something is not done, the IRS ruling will cost the taxpayers of Oklahoma $29 million over five years. Oklahomans who received the grants were not given any prior notice that the grant money they received would be taxable.
Making the tax relief already enacted permanent, while reforming the tax system so that is simpler, fairer and more pro-growth are other goals we hope to achieve this year. We hope to continue to make progress on this front so April will not to be the most dreaded month of the year.
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