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Washington, D.C., Aug 14, 2007 - Congressman J. Randy Forbes (VA-04) announced today that he has cosponsored legislation to make permanent the tax relief measures passed in 2001 and 2003. If these tax cuts expire, it will cost Americans $400 billion per year. The Tax Increase Prevention Act (H.R. 2734) will prevent millions of hardworking American taxpayers at all income levels from facing tax increases.

“I committed to supporting this legislation because I do not want to see my constituents and other Americans face higher tax burdens just for participating in everyday activities like getting married, having children and paying college loans. Additionally, this country cannot afford the economic impact that will be felt by small business owners nationwide who will face higher tax bills,” Forbes said. “The tax relief packages, when originally passed by Congress, benefited every taxpayer and small businesses in every state across this county – we cannot backtrack on what we did then and re-impose these substantial taxes.”

Without the Tax Increase Prevention Act, citizens in 2010 will pay higher taxes for marriage, having children, adopting children, earning money, saving money, paying on college loans and dying because current tax deductions, exemptions and allowances would expire. Every American will feel some effect and five million low-income families that currently pay no income tax will be hit with a tax bill in 2010. Additionally, business owners will see higher taxes for research and development, making a profit, paying dividends to shareholders, and buying products for small businesses.

Specific tax increases would include:

• 13% tax hike for many small businesses
• 33% tax hike for capital gains
• 164% tax hike for dividends
• 55% Death Tax
• 50% cut in the child tax credit
• 50% tax increase for taxpayers in the lowest income tax bracket

“Americans deserve some degree of certainty about the level of taxes they face in the coming years and that is why I and the other cosponsors of this legislation urge the Congress to ensure that the tax cuts of 2001 and 2003 are made permanent before it is too late,” said Forbes. “Giving money back to hardworking taxpayers makes sense and our economy depends on it.”

Congressman Forbes is a strong supporter of working to make certain that Americans do not face undue tax burdens. For a comprehensive look at the steps Congressman Forbes has taken for tax reform, visit: http://forbes.house.gov/issues/taxes.htm.

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