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| Wilson Hails Tax Relief for Hundreds of Thousands in NM |
October 04, 2004 |
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| New Law Signed Today Preserves Tax Relief for NM Families & Small Businesses
Washington – Congresswoman Heather Wilson today welcomed the signing into law of 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.
Wilson supported the Working Families Tax Relief Act of 2004 (H.R. 1308), which overwhelmingly passed the House 339-65 on September 23 and signed into law today. Three important tax relief measures that were set to expire will now be preserved. Today’s action extends the $1,000 child tax credit for another five years, extends the marriage penalty reduction by another four years, and extends the measure allowing more people to qualify for the lowest 10 percent bracket by another six years.
“Allowing a tax increase right now would have set up a roadblock as the economy picks up speed,” Wilson said. “Working families in New Mexico must be able to count on this essential tax relief.”
The economy has created nearly 1.7 million jobs since last August during 12 straight months of job gains, and the nation’s 5.4 percent unemployment rate is below the average for the 1970s, 1980s and 1990s. New Mexico added 2,300 jobs in August, for a total of 10,700 so far this year.
Preserving Tax Relief
· Preserving the newest (since 2001) and lowest tax bracket at 10 percent for working Americans, including, about 540,000 New Mexicans, for another six years.
· Preserving the $1,000 tax credit for each child for America’s families, including more than 160,000 New Mexico couples and single parents, for another five years.
· Preserving the reduction in marriage penalty for America’s families, including more than 185,000 New Mexico couples, for another four years.
· Preserving the tax credit for research and development for small businesses, an important priority for New Mexico’s economy and a measure Wilson initially cosponsored. Small businesses create nearly eight of every 10 new jobs in America.
Without action, tax increases were scheduled to begin occurring this year. Without this effort, the 10 percent bracket would have diminished by $2,000 next year for married couples and eventually disappeared altogether by 2011. Today’s action preserves a 10 percent rate on the first $14,000 of taxable income for couples and $7,000 for singles. If the bracket had been allowed to shrink, about 73 million working people would have paid higher taxes.
“This tax relief is indispensable because it was specifically designed to help lower and middle income working families who need it most,” Wilson concluded.
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