Says Certainty in the Tax Code Is Needed for Both Short- and Long-Term Growth
WASHINGTON, DC – Today, U.S. Senator Jim DeMint (R-South Carolina) announced that he will seek to expand the proposed stimulus plan to make the 2001 and 2003 tax cuts permanent.
“The most important economic priority for our country is to make certain that taxes do not go up,” said Senator DeMint. “Everyone is in a hurry to pass something quickly but we need to make sure that it actually works. Congress was wrong to make the tax relief temporary and now it’s about to make that mistake again. For that reason, I will work to improve the proposed stimulus plan by making America’s tax relief permanent.
We’re not going to grow our economy with temporary cash handouts. American families and businesses need permanent tax relief and they need to know they won’t face the largest tax increase in history in a few years. We must bring certainty to our economic future now, and make the tax cuts permanent.”
he tax relief that was enacted in 2001 and 2003 is set to expire in less than three years. If Congress allows that to happen, we will see an end to many of the measures that have helped our economy grow – including the 10 percent individual income tax bracket, repeal of the Federal death tax, reductions in the marriage penalty, the expansion of the child tax credit, and reduced rates on regular income, capital gains, and dividends. This would mean that:
• Twenty-six million small business owners would see their taxes increase by nearly 17 percent – or about $4,000 on average.
• A single mom with two children and $30,000 in earnings would see her taxes go up by 67 percent.
• An elderly couple with $40,000 in income would see their taxes go up by about 155 percent.
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