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| Wilson Supports Extending Tax Relief for NM Families and Small Businesses |
May 10, 2006 |
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Act Prevents a Tax Increase that Would Weaken the Surging Economy
Washington, DC – Congresswoman Heather Wilson today supported extending tax relief for New Mexico middle income families and the small businesses that create most new jobs.
The Tax Relief Prevention and Reconciliation Act of 2005 (H.R. 4297), passed today 244-185, prevents a tax increase on many married couples, seniors with capital gains income and small business owners. The conference report is scheduled for action in the U.S. Senate this week and will then be sent to the President to become law.
“Our economy is looking great. Let’s not smother the fire with a tax increase,” Wilson said. “We want to see more of this growth and new jobs, and the best way to do that is to leave money in the pockets of our families and small business owners.”
Wilson’s support hinged on two key elements of the bill: It averts tax increases on middle-income families who fall into the Alternative Minimum Tax (AMT), and it extends Section 179 investment incentives for small businesses that lead to job creation. The bill also prevents tax increases on seniors who have dividend income, roughly half of all tax-paying seniors.
Wilson’s priority has been preventing tax increases on the middle-income taxpayers who fall into the AMT. Because of that focus, she has supported Democrat-sponsored efforts that shared her priority. These include voting for an alternative in December 2005, sponsored by Rep. Charlie Rangel (D-NY), and motions to instruct conferees, including a vote on Feb. 8, 2006, that the priority for tax relief should be AMT relief.
“The Alternative Minimum Tax needs to be fixed or eliminated,” Wilson said. “It was intended to keep wealthy people from claiming so many exemptions and deductions that they didn’t pay any taxes. Increasingly, working families are being affected.”
Highlights of the Tax Relief Prevention and Reconciliation Act:
Prevents an increase on the Alternative Minimum Tax (AMT) for an additional year, protecting 15 million taxpayers. The AMT often falls on two-parent families.
Extends Section 179 of the Tax Code providing for continued Small Business deductions of up to $100,000 for equipment and machinery. This encourages expansion and continued job creation.
Extends for two years the lower tax rate on dividend income and capital gains income. 121,000 New Mexico taxpayers have benefited from this provision. Roughly half of taxpaying senior citizens will benefit from preserving the dividend income rate, while nearly 1 in 3 senior citizens will benefit from continuing the capital gains income rate.
The Economy is Creating Jobs:
138,000 jobs in April and 211,000 in March.
2.1 million jobs created over the past 12 months.
The unemployment rate is 4.7 percent – lower than the average of the 1960s, 1970s, 1980s, and 1990s.
Home ownership remains at record highs.
Consumer confidence is the highest in four years.
Since August 2003 the economy has created 5.2 million jobs.
Albuquerque has the lowest business costs in the nation, 24 percent below the national average, according to Forbes Magazine.
“According to Forbes, Albuquerque is the best place in America to build a business,” Wilson said. “Small businesses create a majority of all new jobs in America. Government doesn’t create wealth, but it can create an atmosphere for small businesses to create jobs. We need to continue encouraging innovation and investment by keeping taxes low and regulations fair.”
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