U.S. Rep. Lynn Westmoreland voted today for the Tax Increase Prevention and Reconciliation Act of 2005, which extends alternative minimum tax relief, the increased limit on small business expensing, and the low rates on capital gains and dividends. The conference report passed 244-184, with near unanimous Republican support and almost no Democratic votes.
"The tax cuts passed since 2001 have led to a great economic expansion, even as we’ve weathered a devastating terrorist attack, a war in the Middle East and the worst natural disaster in our nation’s history," Westmoreland said. "This legislation allows businesses and families to keep more of their hard-earned money to spend and save as they see fit, not as the government sees fit. This is an extension of current law but a "No" vote was a "Yes" for higher taxes.
"Higher taxes would hurt Americans and hurt the U.S. economy. It would mean less spending, less saving, less investment, less business expansion, less job creation. What the Democrats want will lead to the current situation in many Western European countries, where high taxes and suffocating regulation have led to constant double-digit unemployment. For young workers in France, the unemployment rate is more than 20 percent. That’s not the case here. Our economy is continuing to create new opportunities. Our economic and tax policies are paying dividends.
"I’m proud to be a part of this Congress today. I hope we can show as much determination when the time comes to cut spending and balance the budget."
Among other things, the Tax Increase Prevention and Reconciliation Act 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:
138,000 jobs created in April.
Approximately 2 million jobs created over the past 12 months.
More than 5.2 million jobs created since August 2003.
An unemployment rate of 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.
To find out how the passage of this legislation will impact Georgia, click on links below:
1. This link takes you to a recent essay that contains state-by-state capital gains income and dividend income.
