Legislation stops increases in income, capital gains, business taxes
Washington, DC - With a nod to today's deadline for filing federal income taxes, Idaho Senator Mike Crapo has partnered with Senator Jon Kyl (R-Arizona) to introduce legislation to make sure tax relief does not disappear in the next few years. Left unchecked, present budget plans and tax changes could cost taxpayers more than $700 billion dollars by 2011, when most of the important and successful tax relief passed in the last few years is set to expire.The Invest in America Act makes permanent the $1,000-per-child tax credit, marriage penalty relief, individual income tax and business tax relief that Congress approved in 2001 and 2003. Crapo says the action is needed to extend or make permanent the tax relief set to sunset in the next few years."We must address the tax rates as well as the ultimate issue of tax reform," Crapo said. "This Act would make permanent the increase in tax credits for the child tax credit, marriage penalty relief, the adoption tax credit and the tuition tax credit. In addition, it would permanently repeal the death tax and the alternative minimum tax which affect thousands of Idahoans."Crapo noted that tax relief has spurred economic growth averaging 3% annually. With more than half of all Americans owning stock, many families and retirees will benefit as the changes in capital gains and dividends taxes drop to zero in 2008 for those in the lowest income brackets."The Invest in America Act secures a system where our economy creates jobs and private investment keeps taxes low for individuals," Crapo added. "We can make these tax cuts permanent by passing this bill as soon as possible and then getting to work on simplifying the tax code."Crapo, a member of the Senate Finance Committee, has long led efforts to extend pro-growth tax policies for all Americans. In the 110th Congress, Crapo has also introduced S. 502 to make permanent tax relief on capital gains and dividends. The bill currently has thirty co-sponsors.