Washington, D.C. -  Rep. Tim Johnson said Wednesday’s passage of the Tax Increase Prevention and Reconciliation Act will ensure the strength of the American economy, inspire confidence in the business community and protect families from more tax increases.

The House passed the conference report on a 244-185 vote. It is now in the hands of the Senate.

“This is a huge confidence booster for an already strong economy,” Rep. Johnson said. “As a result of these tax policies, families, seniors and small business owners are getting relief. People are saving money, business investment continues and more people are working than ever before. It is vitally important that we stay the course.”

The agreement extends the 15 percent tax rate on dividends and capital gains for two more years, through 2010. Without action, those rates would have increased after 2008. Extending the lower tax rate on dividend income through 2010 will prevent what amounts to a $13 billion tax increase over the next four years. One in two taxpaying senior citizens will benefit. Extending the lower rate on capital gains will benefit one in three seniors.

The report also extends the Alternative Minimum Tax Relief for 2006, including increased exemption levels and favorable treatment of non-refundable personal tax credits.

“Lower tax rates had had precisely the result that we predicted,” Rep. Johnson said. “I supported these tax cuts in 2003 and ever since the economy has expanded at a robust rate.”

Rep. Johnson cited the fact that 138,000 jobs were created in April, accompanied by gains in wage growth. More than 5.2 million jobs have been created since August, 2003. The unemployment rate remains at 4.7 percent, lower than the average of the 1960s, 1970s, 1980s and 1990s.

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

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