|
This year Oklahomans and all taxpayers across the country can approach tax day with a little more optimism. Because of the Economic Growth and Tax Relief Reconciliation Act of 2001, the Jobs and Growth Tax Relief Reconciliation Act of 2003, and the Working Families Tax Relief Act of 2004 every taxpayer who paid income taxes will get tax relief this year.
One hundred and eleven million taxpayers across the country will see their taxes decline by an average of $1,877 because of the tax relief packages. A family of four earning $40,000 will receive tax relief of $2,010. Over 5 million individuals and families will see their income tax liabilities completely eliminated directly because of these tax packages. In Oklahoma, over one million people will pay lower taxes this year because of the tax polices that were passed by Congress over the past five years. Based on numbers of people who filed last year, 378,000 Oklahomans will see a reduction in their taxes because of the elimination of the marriage penalty in the tax code. Almost 320,000 Oklahomans will have a lower tax obligation because of the child tax credit.
To help the individuals and families that need it the most, the President’s tax cuts have shifted a larger share of the individual income taxes paid to higher income taxpayers. In 2006, with nearly all of the tax cut provisions fully in effect (lower tax rates, the $1,000 child credit, marriage penalty relief), the projected tax share for lower-income taxpayers will fall, while the tax share for higher-income taxpayers will rise. The share of income taxes paid by the bottom 50 percent of taxpayers will fall from 4.0 to 3.4 percent.
I am working now with my colleagues in the House to extend these tax cuts permanently. If these tax cuts are not made permanent, taxes will begin to rise in the coming years. In 2008, the small business expensing limit will shrink from $100,000 to just $25,000, increasing the cost of capital investments for America’s small businesses. In 2009, the top tax rate on dividends will increase from 15 to 35 percent, while the tax on capital gains will climb from 15 to 20 percent, raising the tax burden on retirees and families investing for their future. In 2011, the tax rate relief, the new 10-percent tax bracket, death tax repeal, marriage penalty relief, and all the remaining tax relief enacted over the past few years will sunset, resulting in tax increases for every individual American man or woman who pays income taxes.
Thankfully, taxes will be lower this year than in previous years before the tax cuts. I will be working to make sure it stays that way. The economy is stronger today because of the tax relief measures enacted over the past several years. Extending the tax measures will prevent future tax hikes and ensure our economy will continue to get stronger.
|
|
