Dreier Votes to Prevent a Tax Increase on Low-Income Americans

May 13, 2004

WASHINGTON, D.C. - Congressman David Dreier (R-San Dimas), Chairman of the House Rules Committee, voted today to prevent a massive tax increase on millions of working Americans. Legislation to make permanent the 10-percent individual tax bracket, H.R. 4275, was approved with strong bipartisan support, 344-76.

"The tax relief we passed in 2001 and 2003 is doing great things for our economy," Dreier said. "We need to make permanent the aspects of that relief that will continue the current economic expansion and help Americans plan for their future. The 10 percent tax bracket is a valuable tool for those working hard to succeed and invest in their future. To allow it to expire would be harmful to our economy and harmful to the hopes and dreams of millions of Americans."

The 10 percent tax bracket was created in the 2001 tax relief package. Unless Congress acts, it will be eliminated in 2011, increasing taxes on millions of low-income families and individuals. It is estimated that permanency of the 10 percent bracket would result in $218 billion in tax relief over 10 years and will save the average taxpayer more than $2400 over the next decade. Currently, the 10 percent bracket applies to the first $7000 of taxable income for individuals and $14,000 for joint filers. The legislation today will not only make the bracket permanent, it will also prevent low-income Americans from gradually working their way into the 15 percent bracket. If it is not enacted, 73 million Americans could pay higher taxes next year when the 10 percent bracket narrows to include fewer low-income Americans and families.

"This is the kind of tax relief that can really affect our economy," Dreier said. "Working Americans work hard for their money. They should be able to keep as much of it as they can, so that they put it back into purchases and job creation. We know it works. Let's keep it going."