BENEFITS FOR THE WORKING FAMILY
With college tuition, medical bills and mortgages to pay, American families cannot afford to pay more in taxes. That's why I persistently fought to pass the Working Families Tax Relief Act to extend tax cuts that were put in place two years ago by Congress. Under this significant piece of legislation, American families will see $131 billion in tax relief.
Last year I worked with my colleagues and President Bush to pass a $350 billion jobs and economic growth package to put Americans back to work and stimulate the economy. By putting more money in the pockets of individuals and small businesses, we freed the engines of our economy. Since that bill was signed, the stock market is up, private sector growth is strong, and America's standard of living is on the rise. Homeownership rates reached an all time high and among minorities it is at a new record of 51 percent. Almost two million jobs have been created nationwide since last April and more than 116,000 jobs have been added in Texas. At 5.4 percent, unemployment is below the averages for the 1970s, 1980s and 1990s.
The Working Families Tax Relief Act covers several key provisions that were facing expiration at the end of this year. Among these is a respite from the well-known marriage tax penalty. In 2001 and 2003, Congress and the President passed sweeping tax cuts that saved 52 million married couples, including 3.6 million Texans, between $130 to $600 on their 2003 tax bills. By extending this through 2010, a family of four with an income of $40,000 will now save more than $900 on their taxes next year.
In 1997, Congress enacted a $500 per child tax credit and later doubled it to $1,000. The bill President Bush signed maintains the full credit for another six years, providing needed relief to parents of over 47 million children.
Furthermore, the Alternative Minimum Tax (AMT) exemptions were continued. The AMT helps cover 13 million Americans that otherwise would not qualify after the January 1st deadline. This measure protects certain taxpayers by exempting from the AMT the first $58,000 of a married couple's income and $40,250 for a single individual. The AMT, along with the included 10 percent tax bracket extension, provides significant help to middle and low-income Americans.
Additional benefits were included for military families and American schools. Under this bill, soldiers living in combat zones are provided higher child credit refunds and earned income tax credits. It is the least we can do for our troops sacrificing so much. Elementary and secondary school teachers, among other educators, are eligible for approximately $250 in deductions for personal payment of classroom expenses. This above-the-line deduction rightly defrays some of the expenditures our children's educators voluntarily make to enhance the quality of each student's education.
I have long believed taxpayers make better use of their money than the government ever could. Time and time again, the American people have proven that to be the case. They know how to handle their money to best provide for themselves, the economy and our country.
October 8, 2004