FOR IMMEDIATE RELEASE  
Wednesday, April 14, 2010

CONTACT: Cullen Schwarz
Office: (202) 225-5802
 

REPORT SHOWS 99% OF WORKING MICHIGANDERS WILL PAY LOWER TAXES

As Tax Day Approaches, Report Shows Average Federal Tax Cut of $1,086 for Michigan Workers

Polls Show Most Americans Believe Taxes Have Gone Up or Stayed the Same despite the Fact That Taxes Have Been Lowered

Washington, D.C. – As Americans across the country pay their taxes and discuss tax policy this week, Citizens for Tax Justice (CTJ), a public policy organization specializing in federal tax issues, released a new report showing the tax burden has been reduced for 99% of working Michigan taxpayers in a wide range of income brackets this year.  The report shows that working Michigan families saw their taxes cut by an average of $1,086 in 2009.  The report specifically highlights tax cuts in the American Recovery and Reinvestment Act.  Roughly a third of that Act (a.k.a. the “stimulus bill”) was comprised of individual and business tax cuts.

CTJ also released a national report showing that while the vast majority of Americans believe their taxes have gone up or stayed the same, 98% of Americans’ taxes have gone down.  Third Way, a think tank and research firm, released a similar report this week showing middle class taxes have been reduced since 2007.  Representative Gary Peters has made cutting middle class taxes a top priority. 

“Our country’s middle class is being squeezed like never before, especially in Michigan.  Frankly, I believe our very way of life is being threatened,” Rep. Peters said.  “I have strongly supported across the board middle class tax cuts.  I am also proud to have authored targeted tax relief to help families struggling to keep up with rising living costs like childcare and college tuition.  We need to help restore middle class families’ standard of living and jump-start our economy, and middle class tax cuts accomplish both.”

The first bill Representative Peters introduced upon assuming office in 2009 was a middle class tax cut.  Peters authored the “Helping Families Afford to Work Act,” which would provide a tax credit of up to $6,000 to offset the skyrocketing cost of child care.  He has also introduced the “Helping Families Afford Tuition Act,” which would provide a tax credit of up to $5,000 per student per year to offset the rising cost of college tuition and other related expenses.  Peters also strongly supported middle class and small business tax cuts in the Recovery Act, as well as shielding upper-middle class families from the Alternative Minimum Tax.

All totaled, Congress has enacted over $800 billion in tax cuts since Peters assumed office in January 2009, with another $285 billion already making their way through the legislative process.  Individuals can check the White House online tax calculator by clicking here to see tax cuts for which they may qualify.  More tax savings facts are below. 

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.

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