Dreier Applauds Vote to Prevent Tax Increases

May 10, 2006

WASHINGTON, DC - Congressman David Dreier (R-San Dimas,CA), Chairman of the House Rules Committee, voted today to approve an extension of tax relief that has created record economic growth and job creation. The Tax Increase Prevention and Reconciliation Act of 2005, H.R. 4297 was approved with bipartisan support, 244-185.

"The evidence is clear - the tax relief approved in 2003 has led to the creation of more than 5 million jobs and an increase in wages for American workers," Dreier said. "The absolute worst thing we could do is let taxes be raised. Today, House Republicans and few Democrats prevented that from happening. As the economy continues to grow, we need to keep in place the policies that have spurred the expansion. A growing economy creates good paying jobs, and increases revenues to the federal treasury, further reducing the deficit. This amounts to a win-win for the American people."

The legislation passed today will extend alternative minimum tax relief for an additional year. It will also extend the increased limit on small business expensing. Additionally, the bill extends the lower tax rates on dividends and capital gains income through 2010. These extensions are of particular benefit to seniors who depend on income derived from their investments.

The Jobs and Growth Tax Relief Reconciliation Act of 2003, which was passed in May 2003, has spurred tremendous economic growth. Since August 2003, more than 5 million jobs have been created. The current unemployment rate is at 4.7 percent, lower than the average of any decade since the 1950s. Economic growth has also been robust. In the first quarter of 2006, the economy grew 4.8 percent, representing the 18th consecutive quarter of positive growth. At the same time, revenues to the federal treasury have increased dramatically. Over the last 12 months, overall tax receipts were up 14.5 percent. Just today, the Treasury Department announced that April 2006 yielded the second highest revenue total ever, $315.1 billion. Thanks to these increased receipts, the Congressional Budget Office estimates that the 2006 deficit could be $71 billion less than they predicted just two months ago.