FOR IMMEDIATE RELEASE
Tuesday, September 14, 2010

Isakson Co-Sponsors Legislation to Permanently Extend Tax Relief

WASHINGTON – Stating that this is no time to raise taxes on any American, U.S. Senator Johnny Isakson, R-Ga., today co-sponsored legislation to permanently extend tax relief provisions passed by Congress in 2001 and 2003. If Congress fails to take action, this tax relief will expire at the end of this year and taxes would go up.

"Our families and small businesses cannot plan their budgets or grow their businesses when the tax bill coming from Washington is uncertain and unpredictable," Isakson said. "By making these tax provisions permanent, we can create a pro-growth economic environment where families and small businesses can thrive."

Specifically, S.3773 would extend the 2001 and 2003 individual income tax relief by preserving the 10 percent, 15 percent, 25 percent, 28 percent, 33 percent and 35 percent income tax brackets. The legislation would also extend the child tax credit at $1,000 per child and continue marriage penalty relief.

The bill would also permanently exempt many Americans from the Alternative Minimum Tax in 2010 and beyond. Currently, more than 26 million American families are subject to this tax, because it was not indexed for inflation when it was created in 1969. The legislation would increase the 2010 exemption to $47,450 for single and head of household filers, $72,450 for married people filing jointly and for qualifying widows or widowers, and $36,225 for married people filing separately. Exemption levels would continue to increase each year.

In addition, the bill would offer "death tax" relief by providing for a 35 percent estate tax rate, a unified estate/gift exemption amount of $5 million per individual that is indexed for inflation and a stepped-up basis for inherited assets. The death tax fell to zero this year but is set to come back to a 55 percent tax rate on Jan. 1, 2011, if Congress fails to take action.

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