Washington, May 7, 2005 -

U.S. Representative John R. Carter (TX-31) today voted in favor of a bill that will prevent tax increases on millions of average Americans. H.R. 4297, the Tax Relief Extension Reconciliation Act of 2005, will extend a number of pro-growth policies that are important to small businesses and families. Since May of 2003, nearly 4.5 million new jobs have been created, and unemployment rates have been at record-lows. Further, incomes are increasing, home and retail sales are on the rise, and manufacturing production continues to expand.

"Americans are seeing the benefits of our nation’s strong economy, and this legislation will continue the policies that are responsible for such growth," Congressman Carter said. "I am proud to have joined my colleagues in preventing tax increases for millions of individuals, families, and businesses. The current economy is allowing more and more people to enjoy the American dream, and I will continue to support bills that strengthen the economy."

 The bill extends an income tax deduction for State and local sales taxes. It also includes language to extend the reduced tax rates on capital gains and dividend income. This provision will benefit the more than 60 percent of Americans receiving capital gains or dividend incomes of $100,000 or less. The legislation includes an allowance for personal tax credits, such as the dependent care credit, the credit for the elderly and disabled, the credit for interest on certain home mortgages, among others to offset Alternative Minimum Tax (AMT) liability. There is an above-the-line deduction for higher educations expenses and out-of-pocket teacher classroom expenses. Further, the bill extends the law allowing for tax-deductible contributions to Archer Medical Savings Accounts (MSA).

The Tax Relief Extension Reconciliation Act passed the House today by a vote of 234 to 197.