Republicans Act to Extend Tax Relief

Bill will extend tax relief to small businesses, seniors, and families

WASHINGTON—On the heels of 31 consecutive months of uninterrupted job growth, House and Senate Republican leaders this week forged an agreement on a bill to prevent tax increases on small business owners, seniors, and families.  H.R. 4297, the Tax Increase Prevention and Reconciliation Act of 2005, extends alternative minimum tax relief, the increased limit on small business expensing, and the low rates on capital gains and dividends.  Congressman Mario Diaz-Balart (R-FL) today said this important legislation will help spur continued economic growth.

"Republicans have worked hard to ensure millions of American small business owners, families and seniors will continue to enjoy relief from budget-busting, economy-killing taxes,” said Diaz-Balart.  "With our nation's economy prospering at historic levels, this Republican Congress has acted to ensure that more Americans keep their hard-earned money and benefit from continued economic growth. This tax relief measure will assist seniors living off dividends, small business owners who will be able to write off business expenses and working families currently burdened by excessive taxation.

"On Sunday's Meet the Press, Democrat leader Nancy Pelosi practically guaranteed Democrats would raise taxes on the American people and commit economic suicide,” Diaz-Balart continued.  “She would rather take Americans money than keep our economy thriving.”

Among other things, the Tax Reconciliation Bill will do the following:

• Extend alternative minimum tax relief for an additional year.

• Extend the increased limit on small business expensing.

• Extend the lower tax rate on dividend income through 2010, thus preventing a $13 billion tax increase over the next four years.  1 in 2 taxpaying senior citizens will benefit.

• Extend the lower tax rate on capital gains income through 2010, thus preventing a $7 billion tax increase over the next four years.  Nearly 1 in 3 senior citizens will benefit.

Impressive economic numbers of the past few months:

• 138,000 jobs created in April.

• 2.1 Million Jobs created over the past 12 months and more than 5.2 million jobs created since August 2003.

• The unemployment rate is 4.7 percent – lower than the average of the 1960s, 1970s, 1980s, and 1990s.

• Gross domestic product (GDP) for the first quarter of 2006 grew at a robust 4.8 percent.