February 04, 2005

Crapo: Tax Cut Vote Prevents Tax Increases

Action stops tax increases on low and middle-income families

Washington, DC â?? Idaho Senator Mike Crapo is applauding President George W. Bushâ??s quick action today to sign into law an extension of the income tax cuts that were due to expire next year. Crapo voted in favor of the extensions approved by Congress last month. Without the action by Congress and the President, taxes would have increased for 94 million Americans. The action means that tax credits amounting to $1000 per child and the elimination of the marriage penalty will be preserved until 2010. A family of four making $40,000 will save more than $900 on their taxes under the plan. â??Middle-class families would have seen their taxes increased had we not stepped in to extend the sunset provisions built into this tax bill,â?? Crapo noted. â??Middle-income families will also benefit by seeing the first $58,000 of income exempted from federal income taxes, and this tax relief package has helped create jobs and encouraged both consumer spending and personal savings,â?? he added. Crapo noted that economic models see federal deficits coming down and noted the efforts to tighten the budget and these tax cuts â??will actually help us to continue to shrink the federal budget and keep the federal government from a path of uncontrolled growth. I know there are critics of these tax cuts but no one who views them objectively can question the economic benefits to families and business,â?? he added. â??These efforts encourage small business growth and a simpler tax code encourages job growth and economic investment in America.â?? # # #