Law Will Prevent Tax Hikes on Families, Seniors, Small Businesses

Washington, May 17, 2006 -  Representative John Carter (TX-31) today showed his strong support for tax relief by attending the White House ceremony where the President signed into law H.R. 4297, the Tax Increase Prevention and Reconciliation Act. This bill prevents tax increases on small business owners, seniors, and families. Specifically, it includes provisions to extend alternative minimum tax relief, the increased limit on small business expensing, and the low rates on capital gains and dividends.

“This law will keep money where it belongs—in the pockets of the American people. Tax relief policies have a proven record of benefiting millions of working Americans, families, and small businesses,” Congressman John Carter said. “Since these tax cuts were implemented in 2003, Americans have enjoyed steady economic growth and record job numbers. I am pleased to have supported a bill that will continue the pro-growth policies that have allowed more individuals to fully participate in the American Dream.”

This law includes language to extend alternative minimum tax (AMT) relief for an additional year and the increased limit on small business expensing. It also extends the lower tax rate on dividend income through 2010, thus preventing a $13 billion tax increase over the next four years. This provision will benefit 1 in 2 taxpaying seniors. Further, this law will extend the lower tax rate on capital gains income through 2010, thus preventing a $7 billion tax increase over the next four years. This extension will benefit nearly 1 in 3 senior citizens.