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Washington, D.C. - By now, most of you have probably received your tax refunds. You might notice a change from previous years. That’s right... more money! Under the leadership of President Bush, Congress was able to pass two of the largest tax relief bills in this nation’s history and put the money where it belongs: in the hands of working Americans. But our job is far from over. In order to ensure that you don’t pay higher taxes in 2005, we must work to make those all-important tax cuts permanent.
Currently, there is legislation in Congress designed to do just that. Within the last few weeks, my colleagues in the House and I have passed, and sent to the Senate, bills that would make permanent the $1,000 child tax credit, the new 10% tax bracket, and the elimination of the marriage penalty.
$1,000 Child Tax Credit
The first part of the equation to providing permanent tax relief to America’s families is to continue helping those with children. The 2001 tax cut included a gradual increase in the child tax credit to $1,000 between 2001 and 2010. However, in 2003 my colleagues and I agreed that you shouldn’t have to wait for the extra money to spend on your children, and we passed a bill making the increase to $1,000 immediate. With hundreds of thousands of children across the state of Oklahoma and over a hundred thousand in the Third District alone, I believe in and voted in favor of legislation to make permanent the $1,000 child tax credit.
10% Tax Bracket
The 2001 tax relief bill also created a new 10% bracket designed to reduce the burden on working families. Because of this significant relief, the first $14,000 of taxable income ($7,000 for singles) is taxed at a lower 10% rate instead of 15%. I believe that you, not Washington, know the best way to spend your hard-earned money, which is why I voted to make the 10% bracket permanent. Without permanency, 73 million working Americans will be hit with an average tax increase of $2,400 over the next decade. This is an increase that many of us can’t afford to see.
Elimination of Marriage Penalty
Before 2001, the tax code penalized married couples by forcing them to pay higher taxes than those filing individually. The 2001 tax relief bill eliminated that penalty and today benefits 35 million couples. However, this relief is intended to be reduced next year and expire in 2010. If this holds true, 27 million married couples will see an average tax increase of $300 and over 30 million couples will experience an increase of more than $700 starting in 2011. With increases like these, I think it’s important we say, “I do” to making the marriage penalty relief permanent.
Tax relief for American families has been long overdue. You have worked hard and seen a large portion of your paycheck taken away by Washington bureaucrats. I will carry on in Congress to make sure the money you earn goes in your pocket. Making these tax cuts permanent will be a big step in developing a tax code that works for you. |
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