WASHINGTON – In 2001 and 2003, Congressional Republicans led the effort to reduce the tax rates for all Americans who pay Federal income tax. This broad-based tax relief has contributed to the strong economic growth America has seen during the past few years. Unfortunately, without the support of Democrats, Congress was unable to make this relief permanent. If nothing is done, these rates will eventually revert back to the higher levels, meaning a tax increase for all Americans that pay income tax.

Since these lower rates were enacted, Republicans have continually pushed to extend these relief measures beyond their expiration. However, recent comments by Democrats indicate that the future of extending this tax relief is uncertain. In a recent interview with the Bloomberg, Ways and Means Committee Ranking Democrat Charlie Rangel (D-NY) said he "cannot think of one" of President George W. Bush`s first-term tax cuts, such as the lower tax rates, that merit renewal.

"Lowering the tax rates – including the creation of the new 10 percent bracket – has helped every single American who pays Federal income tax," said Ways and Means Chairman Bill Thomas (R-CA). "This broad-based relief has kept tens of billions of dollars in Americans’ pockets. Democrats apparently would prefer to see hard-working Americans dig deeper into their wallets and send more money to Washington, DC."

According to the U.S. Treasury Department, more than 94 million tax filers in 2005 benefited from the reduced tax rates, including the Republican-created 10 percent bracket. For more economic information from the Ways and Means Committee, please visit: http://waysandmeans.house.gov/ResourceKits.asp?section=2488.

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