Congresswoman Heather Wilson, First Congressional District of New Mexico
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| Adding Up the Good News for New Mexicans |
December 09, 2005 |
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Dear Friends,
The rhetoric was high pitched on tax relief in the House this week, but there are some basic facts that tell me that extending tax relief already passed is the right thing to do.
All of the tax relief provisions in the bills we passed are ones that we have already implemented but which had sunset dates. The reason for the sunset dates relate to obscure Senate rules. But the consequence is that if we don`t pass a tax law, your taxes will go up.
About half of the tax relief package was made up of widely supported provisions like expanding the section 179 and leasehold improvement deductions for small business that has encouraged small businesses to buy equipment and create jobs, and extending favorable tax treatment for health care deductions and college expenses.
The other part of the savings for taxpayers is the extension of reduced rates for capital gains and dividend income. Starting in 2008, people in the 10 and 15 percent tax brackets will pay no tax on dividends or capital gains.
Here are some interesting facts for you.
One in five people who pay capital gains tax make less than $50,000 a year. One in four people who earn dividends make less than $50,000 a year. More than sixty percent of people getting income from capital gains or dividends earn less than $100,000 a year.
We have become a nation of investors.
Another fact for you. Since we passed the tax relief bill in May 2003, tax receipts coming in to the federal government have increased 10 percent per year. And the deficit has declined by $100 billion over the last 12 months.
How can that be? People invest. Businesses buy equipment. We become more productive. The economy is growing at more that 3 percent per year, and 4.5 million more Americans have paychecks because of this economic growth.
All these things add up to good news for New Mexicans. That`s worth supporting.
Wish you were here,
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