U.S. Rep. Lynn Westmoreland today voted for the Tax Relief Extension Reconciliation Act of 2005. The bill, which passed 234-197, will keep taxes on capital gains and dividends at 15 percent through 2010.
"The Republican tax cut policies have kept our economy humming at an incredible pace, even through a major terrorist attack, a war and a catastrophic hurricane season," Westmoreland said. "It’s obviously a plan that’s working. The economy is expanding and we’re creating jobs. The unemployment rate nationally is 5 percent but it’s lower than that in Georgia. If you’re looking for a job in Georgia, you’re going to find one. Lowering taxes for the long-term allows businesses to plan for the future and encourages them to expand.
"We had 10 straight months of economic growth above 3 percent. The deficit is coming down and federal receipts continue to grow, to $2.1 trillion in 2005 from $1.9 trillion in 2004. We don’t have a deficit because our taxes are too high; we have a deficit because we spend too much in this town and I’ll continue to oppose new government spending and to support cuts wherever possible.
According to the Joint Committee on Taxation, over 60 percent of Americans receiving capital gains or dividend income have incomes of $100,000 or less and stand to benefit from the passage of today’s bill.
Wednesday, Westmoreland supported a series of tax relief measures. The first would slow the expansion of the Alternative Minimum Tax, a stealth income tax that is affecting millions of middle-class taxpayers that itemize deductions on their tax returns. According to a study by the Urban-Brookings Tax Policy Center, the number of taxpayers that will owe the AMT will potentially jump from 2.6 million to 35.6 million – more than a third of all taxpayers – by 2010.
