Dahlkemper: Tax Cuts for 99% of Pennsylvanians Print E-mail
Tuesday, 13 April 2010 16:54

New Report by Citizens for Tax Justice Shows that 99 Percent of Working Families and Individuals in Pennsylvania Paid Lower Taxes in 2009

Washington—Continuing her efforts to reduce the tax burden shouldered by working families across Western Pennsylvania, Congresswoman Kathy Dahlkemper (PA-3) today applauded a report that shows 99 percent of working families and individuals in Pennsylvania benefited from at least one of the tax cuts enacted by Congress and signed into law.

“Many people don’t realize that tax cuts are the biggest individual piece of the Recovery Act,” said Rep. Dahlkemper. “The Recovery Act gave 99% of working families and individuals in Pennsylvania a tax break. I’m proud to have voted for one of the largest tax cuts in history and will continue to work to ease the burden on Western Pennsylvania’s hardworking taxpayers. This new report illustrates our commitment to cutting taxes for Pennsylvania’s families.”

The new report, issued by Citizens for Tax Justice, found that working individuals and families in Pennsylvania received, on average, $1,220 from four tax breaks enacted by Congress and signed into law in 2009. These four tax breaks benefited people at all income levels, making up a total of 99% percent of working families and individuals in Pennsylvania. The four tax credits include the Earned Income Tax Credit, Child Credit, Making Work Pay Credit, and Alternative Minimum Tax relief.

“It’s important to note that this study doesn’t even include the tax breaks for first time homebuyers, businesses or college tax credits—so the tax savings to many families are even greater than this study shows. On average, Americans are getting a 10 percent increase in their tax refunds this year. That’s a big help to individuals and families in our region who are working hard to pay the bills,” said Rep. Dahlkemper.

The report also states that no legislation enacted during the current administration, which coincides with Rep. Dahlkemper’s service in Congress, increased taxes for 2009. Taxpayers can use the White House online tax calculator to find out what tax credits they can receive this year from the Recovery Act.

Tax Savings by the Numbers

$160 Billion - Tax relief provided through the Recovery Act so far to families and businesses.

Nearly $100 Billion - Tax relief provided through the Recovery Act so far that has gone directly in the pockets of working families.

Nearly $3,000 - The record average tax refund taxpayers are seeing this tax season.

Nearly 10% - The percentage average tax refunds are up this year - something the IRS says is largely due to Recovery Act tax credits.

36% - The percentage of taxpayers that have not yet filed their federal income tax returns and should be aware of the Recovery Act tax credits they may be eligible for.

64% - The percentage of taxpayers who have already filed their taxes, but can still amend them after April 15th to collect on any Recovery Act credits they may have missed.

95% - The percentage of working families benefiting from the Recovery Act's Making Work Pay tax credit, making it the broadest tax credit in the history of the country.

$800 - The amount most married couples are collecting through their paychecks this year thanks to the Recovery Act's Making Work Pay tax credit. Individuals collected $400 this year thanks to Making Work Pay.

Up to $2,500 - The expanded amount eligible taxpayers can collect with the American Opportunity Credit to help cover college expanses thanks to the Recovery Act.

Up to $8,000 - The amount new homebuyers can collect this year for purchasing their first home thanks to the Recovery Act's expansion of the First-Time Homebuyers Tax Credit.

Up to $1,500 - The amount homeowners can collect this year on improvements made to their homes like energy-efficient windows, doors and insulation thanks to Recovery Act tax credits.

$2,400 - The amount of 2009 unemployment benefits that taxpayers do NOT have to pay taxes on this year thanks to the Recovery Act.

Over $600 - The increase in Earned Income Tax Credit a single parent of three children making $15,700 in 2009 would collect this year thanks to the Recovery Act.

65% - The amount by which the Recovery Act cut the cost of COBRA health insurance premiums for unemployed workers last year through an up-front tax credit.

700,000 - The number of new homeowners who qualified for the First-Time Homebuyers Tax Credit through the Recovery Act in 2009.