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| Tax Day Burden Lighter for New Mexicans |
April 13, 2006 |
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Growth Policies Lead to 5 Million Jobs and Preserve Federal Revenues
Washington, DC – Congresswoman Heather Wilson today highlighted a Treasury Department announcement that hundreds of thousands of New Mexico taxpayers have a lighter load this April 15th.
Wilson supported the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA) and the Jobs and Growth Tax Relief Reconciliation Act of 2003 (JGTRRA), which have combined to reduce the tax burden on New Mexico families this year.
Yet, federal revenues for Fiscal Year 2005, fueled by the growing economy, totaled $2.15 trillion – the highest level ever.
“Tax relief has helped launch strong economic growth, and led to the creation of five million jobs since August 2003,” Wilson said. “The best way to help New Mexico families is to let them keep more of their money in their pockets.”
642,000 taxpayers in New Mexico have lower income tax bills under EGTRRA and JGTRRA.
559,000 taxpayers in New Mexico benefit from the new 10-percent bracket enacted in EGTRRA and the JGTRRA acceleration to 2003 of the expansions of the bracket scheduled for 2008.
124,000 taxpayers in New Mexico benefit from the EGTRRA reduction in income tax rates above 15-percent and the JGTRRA acceleration to 2003 of the reductions scheduled for 2004 and 2006.
183,000 married couples in New Mexico benefit from the JGTRRA acceleration to 2003 of the EGTRRA provisions that increase the standard deduction for joint filers to double the amount for single filers and increase the width of the 15-percent bracket to twice the width for single filers. These two provisions phase in between 2005 and 2009.
171,000 married couples and single parents in New Mexico benefit from the increase in the child tax credit under EGTRRA and the JGTRRA acceleration to 2003 of the increase from $600 to $1,000 phased in between 2005 and 2010.
121,000 taxpayers in New Mexico benefit from the reduced tax rates on capital gains and corporate dividends under JGTRRA.
SOURCE: Treasury Dept. counts are for the number of returns filed in 2004 that would have benefited from the package. These estimates are based on tabulations from individual income tax returns processed by the Internal Revenue Service in 2004. Most of these returns covered tax year 2003.
Robust Economy Keeps Job Creation Pace
The strong U.S. economy created another 211,000 jobs in March, for a one-year total of 2.1 million jobs, according to the Bureau of Labor Statistics in an April 7 announcement. The unemployment rate, now 4.7 percent, is lower than the average of the 1960s, 1970s, 1980s, and 1990s. Home ownership remains at record highs, and consumer confidence is at its highest level in four years. Real disposable income is up 2.2 percent in the past year.
“Small businesses are the engine of our economy, and growth policies make a difference for them,” Wilson said. “Government doesn’t create wealth, but it can create an atmosphere for entrepreneurs and small businesses to create jobs. We should continue to encourage innovation, investment and expansion.”
Wilson says that we will continue seeing people hired by keeping taxes low and regulations fair for the small businesses that create nearly eight of every 10 new jobs in America.
She regularly tours area businesses to meet with employees and small business owners to have firsthand information about the growth outlook in New Mexico.
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