BILL EXTENDS TAX RELIEF FOR SMALL BUSINESS OWNERS, SENIORS, AND MARRIED COUPLES

Washington, May 10, 2006 - "In addition to allowing millions of Americans to keep more of their own money, the tax cuts we enacted in 2003 helped to spur economic growth that has led to 31 straight months of job creation," said Rep. Cliff Stearns (R-Ocala). "However, this tax relief is set to expire in 2008 unless we extend these provisions."

The House today approved H.R. 4297, the Tax Increase Prevention and Reconciliation Act, which would avert tax hikes on the Alternative Minimum Tax (AMT), capital gains, and dividends; and would extend Section 179 in the Tax Code for continued expensing to small business owners. "This is real tax relief for tens of millions of Americans and will make a real difference for the people of Florida," explained Stearns. "In 2003, 1,780,000 Florida returns listed dividend income and 1,424,000 listed capital gains; Florida stands fourth in the nation for citizens with dividend income and capital gains."

H.R. 4297 would:
* Extend for two years the lower tax rate on dividend income, thus preventing a $13 billion tax increase over the next four years.
* Extend for two years the lower tax rate on capital gains income, thus preventing a $7 billion tax increase over the next four years.
* Prevent an increase on the Alternative Minimum Tax (AMT) for an additional year. AMT is an additional tax some people have to pay on top of the regular income tax, especially two parent families who live in high-taxed States.
* Extend Section 179 of the Tax Code providing for continued Small Business expensing.