Etheridge Votes for Tax Cuts for Middle Class

WASHINGTON -- U.S. Rep. Bob Etheridge (D-Lillington) voted last night to provide tax relief for North Carolina's middle class families by supporting the conference report on H.R. 1308, "All American Tax Relief Act," which passed by a vote of 339 to 65. The legislation ensures that working families continue to receive a tax credit of $1,000 per child, that married couples are not penalized by the tax code and that more people continue to qualify for the lowest tax rate of 10 percent.

"Too many North Carolina families are struggling in the current economy," Etheridge said. "Tax relief for middle class families makes good, common sense. These hard-working families will use the extra dollars to stimulate our economy by buying food for the table, clothes for the kids and other necessities. North Carolina's working families are squeezed by rising health care costs and gas prices; they deserve a break."

The legislation also extends recent changes in the Alternative Minimum Tax (AMT) for one year and speeds up the increase in the refundable child tax credit by one year. It includes the extension of a research and development tax credit to improve the competitiveness of the high-tech sector and U.S. businesses. It also provides an "above the line" deduction of $250 for teachers who spend their own money on schools supplies.

While strongly supporting these middle class tax cuts, Etheridge also supported a provision that would have paid for the tax cuts without adding to the deficit. This provision failed on a procedural vote.