Today, Congressman Brian Higgins (NY-27) voted with his colleagues in the House of Representatives to approve the Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010 (H.R. 4853), timely legislation which would extend middle class tax cuts for the next two years and encourage small business reinvestments.

“I am disappointed that the final bill failed to include the Renewal Community tax provision—something that has had a direct and positive impact on economic development in Buffalo, Lackawanna and Jamestown.  But our fight to reinstate the Renewal Community tax provision isn’t over, it’s just beginning, said Higgins.  “Further, I am strongly opposed to provisions in the bill that dedicate billions of dollars to tax cuts for the very wealthiest of Americans, especially at a time when we are trying to address our national debt.  But we were given a straight up or down vote, and the cost of inaction would be far worse for Western New York families and seniors.  Inaction would mean standing by and allowing taxes to increase on middle class American families—an unconscionable decision during our fragile economic recovery.”

Details of the legislation include:

• Individual Tax Relief for Middle Class Americans. Cutting taxes for middle class Western New Yorkers for two years at the tax rates enacted in 2001.
• Reduced Income Taxes. For one year, putting an additional $112 billion into the pockets of middle class families by reducing payroll taxes, while protecting the long term stability of Social Security by replenishing the trust fund with funding from the general fund.
• Earned Income Tax Credit. Two year extension of the expanded Earned Income Tax Credit.
• Business Tax Relief. Two year extension of the R&D credit, New Markets Tax Credit, Empowerment Zones, Work Opportunity Tax Credit, exclusion of small business capital gains, employer wage credit for activated military reservists, and more.
• Incentives for Families and Children. Two year extension of the Child Tax Credit, expanded Dependent Care Credit, increased adoption tax credit and adoption assistance programs exclusion, Marriage Penalty Relief, and credit for employer expenses for child care assistance.
• Education Incentives. Two year extension of the American Opportunity Tax Credit, expanded Coverdell Accounts, expanded exclusion for employer-provided educational assistance, expanded student loan interest deduction, and more. The American Opportunity Tax Credit will save WNY families $156 million on college tuition.