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Washington, DC-- Today Congressman David Wu continued his fight to give middle class tax relief to Oregon's hard working families by voting for the All American Tax Relief Act (H.R. 1308). The All American Tax Relief Act extends a number of individual tax provisions included in the 2003 Jobs and Growth Tax Relief Reconciliation Act. H.R. 1308 passed the House of Representatives by a vote of 339 to 65.
"Today's vote was about helping provide hard working Oregonians with meaningful tax relief," said Congressman David Wu. "Nobody has to tell Oregonians how hard economic times have been during the past couple of years. The All American Tax Relief Act will provide tax relief for individuals, families and businesses."
The All American Tax Relief Act extends a number tax provisions, including the "marriage penalty" relief, the $1,000 per child tax credit, the increased income limits for the 10% tax bracket and an increase in the income exemption used for calculating the alternative minimum tax. Also included in H.R. 1308 are an extension of the Research and Development Credit, the Work Opportunity Credit and the Welfare to Work Credit.
Specific Provisions Include:
An extension of the $1,000 per child tax credit for five years, through 2009.
Accelerating the increase, currently scheduled for 2005, in the amount of earned income used to calculate the refundable child tax credit. Under H.R. 1308, the amount would increase from 10% of earned income over $10,750 to 15% of earned income beginning this year.
Extending the current "marriage penalty" tax provisions for four years, through 2008. The basic standard deduction and the upper income limit for the 15% tax brackets for married couples filing jointly would remain twice that of single filers.
Extending through 2010 the expanded 10% tax bracket that applies to the first $7,000 of income for individuals and $14,000 for married couples filing jointly. These amounts would be adjusted for inflation beginning in 2004.
Business Provisions:
Extending the Research & Development Credit for business. The current R&D credit is equal to 20% of a taxpayer's qualified research expenses.
The Work Opportunity Credit allows employers a credit of $2,400 for employing certain individuals, including those receiving welfare benefits or food stamps.
The Welfare-to-Work Credit provides employers with a tax credit for wages paid during the first two years of employment to employees who are long-term family-assistance recipients.
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