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| Wilson Says Tax Relief Passes Test |
December 07, 2005 |
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| Preventing Tax Increases, Encouraging Job Creation
Washington, DC – Congresswoman Heather Wilson today said the tax relief package that is scheduled for a vote tomorrow in the U.S. House of Representatives prevents an automatic tax increase and encourages continued job creation.
“Our economy is rolling. A tax increase now only sets up a roadblock,” Wilson said. “We’re keeping the tax relief that helped launch two years of strong growth, create 4.4 million new jobs and reduce the federal deficit by $102 billion.”
“We should not have a sunset provision on job creation,” Wilson said. “This bill prevents automatic tax increases that would harm small businesses and working families in New Mexico.”
The Tax Relief Extension Reconciliation Act of 2005 (H.R. 4297) prevents automatic tax increases on small businesses and working families. Growth in small businesses is responsible for a majority of all new jobs in America.
Instead of allowing a “sunset” on the provisions, the bill extends the tax relief that spurred job creation and the economic expansion that increased federal revenues by 10 percent in 2005, helping to lower the federal deficit by $102 billion from the 2004 projections.
Highlights of economic growth:
Our economy grew at a sizzling 4.3 percent in the most recent quarter.
Our economy has grown by a strong 3.6% this year.
Our economy is projected to continue growing at roughly 3.5% next year.
More people own their own homes today than at any time in American history.
Nationwide, more than 4.4 million jobs have been created since May 2003.
For the year, Albuquerque has added roughly 7,000 jobs for nearly 2% job growth.
Economists project 5 or 6% growth in retail sales over the holiday season.
Hourly wages have climbed 2.9 percent in the past year.
Over the past 19 months, the federal budget deficit has been reduced by $102 billion (roughly 20 percent) since fiscal year 2004 projections because of America’s strong economy and slow growth of non-defense spending.
Today’s bill builds on legislation, signed into law October 4, 2004 and supported by Wilson, which extended tax relief for 540,000 working New Mexicans, a child credit for 160,000 New Mexico couples and single parents, and a reduced marriage penalty for 185,000 New Mexico families. She also supported the expansion of the Section 179 expensing provisions and accelerated depreciation rules that encouraged small businesses to buy equipment and create jobs.
Wilson regularly tours area businesses to meet with employees and small business owners to have firsthand information about the growth outlook in New Mexico.
“Government cannot create wealth. But it can create the conditions for people to invest and create jobs.”
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