April 26, 2007


Crapo says this week's economic events make the case for rate reductions

Washington, DC - The amount of tax receipts being generated by the nation's economy hit a single-day record high this week, the same week that the stock market has closed at record levels. Idaho Senator Mike Crapo noted the news is strong evidence that Congress should agree to extend the tax relief legislation that it passed in 2001 and 2003. The record of $48.7 billion in revenues was recorded by the U.S. Treasury on April 24th, shattering the old mark by more than $12 billion. "This is a single-day record for revenue to the Treasury," Crapo said. "Certainly that record is reflective of this time of the year when people pay their taxes, but they are taxes paid after the lower tax rates have been put in full effect. The last thing we need now is allow tax rates to rise again and bring an end to this period of economic growth and deficit reduction. In the same week, Wall Street set two all-time records by passing the 13,000 mark twice. This underscores the importance of passing legislation that will extend the successful tax relief policies that have fueled and maintained the economic recovery and job creation. "Crapo, a member of the Senate Finance and Banking committees, has authored S. 502, legislation which would make permanent the 2003 tax rate reductions on capital gains and dividends. He noted that tax relief benefits from S. 502 are not limited to higher-income households because more than half of all U.S. households with incomes under $50,000 receive dividends or report capital gains."Tax relief benefits everybody and every area of the economy, including reducing the budget deficit," Crapo added. "Too often, we hear those who want to increase taxes claim that the tax relief is only directed at a wealthy few. That tired old argument has been disputed many times, and the economic growth and tax collection records reflect that. Tax relief efforts from 2001 and 2003 are directly responsible for taxpayers keeping more of their hard-earned dollars as well as improving their own economic situations."