WASHINGTON, DC – Congresswoman Nita Lowey (D-Westchester/Rockland) joined her colleagues today in passing legislation that would extend several tax provisions that decrease the tax burden for middle class families and individuals.  These provisions, which include increasing the child tax credit and eliminating the marriage penalty tax, are currently set to expire in 2005. 

“Our families continue to struggle in an economy where job creation lags and wages are stagnant, while the costs of everything from tuition to health care to groceries continue to skyrocket.  These sensible tax cuts provide immediate relief so that working families don’t have to chose between their bills and their dreams,” said Lowey.

The legislation passed by the House of Representatives would:

• Extend the $1000 per child tax credit through 2009; this credit would otherwise revert to $700 per child in 2005;
• Extend the increase in the standard deduction and assessment brackets for joint returns to twice the size of single filers, effectively eliminating the “marriage penalty” through 2009;
• Extends the category of income that’s taxed at 10% through 2010; the first $7,000 of income for individuals and the first $14,000 for joint filers would otherwise be taxed at a higher rate;  
• Extends for one year, through 2005, the alternative minimum tax (AMT) income limits so that no one with an income below $40,250 ($58,000 for joint filers) will be subject to the AMT; and
• Extends a number of business tax incentives such as the research and development tax credit, the welfare to work tax credit and the teacher tax deduction.

Lowey also supported efforts to permanently extend the child tax credit to military families receiving combat pay and to require fiscally responsible offsets for new tax provisions.  These provisions were defeated by the Republican majority.

“Unfortunately this is not a perfect bill.  The majority chose not to give us the opportunity to provide tax relief for our low-income families and defeated our efforts to assist military families - who sacrifice so much for our nation - and to restore some fiscal sanity to our budget process.  However tax relief for middle class and working families is immensely important to the future well-being of our economy,” said Lowey.  “I’ll continue to work to lower taxes, reduce the costs of health care, and make our communities safer so that all our families are able to prosper.”